It seems one possible avenue to save Toys "R" Us has been closed down.
Last week MGA Entertainment CEO Isaac Larian put up a $675 million dollar bid to purchase a selection of Toys "R" Us stores in the U.S., as well as another $215 million to purchase the Toys "R" Us stores in Canda, which are remaining open. Unfortunately, a source close to the company said Larian's bid wouldn't be considered a qualified bid due to coming in way under what the Toys "R" Us assets would draw individually (via NJ.com).
Larian explained that his bid hasn't been officially rejected yet, but is determined to keep trying to save the longtime toy retailer.
"I haven't been notified of the bid rejection, but if this is true, it is very disappointing," Larian said in a statement. "It is our hope and expectation that we can continue to participate in the bid process, so we can keep fighting to save Toys R Us. We feel confident that we submitted a fair valuation of the company's US assets in an effort to save the business and over 130,000 domestic jobs."
Larian originally started a GoFundMe campaign to raise money to save the retailer, but later has admitted that was more of a publicity stunt to gather other investors to the cause. If he were to acquire Toys "R" Us in the future, none of those funds raised from individual donors would be used.
"The time is now. Every day that goes by, the value of Toys R Us declines and more people lose their jobs," Larian said in a statement. "I did my part and now it's up to the other side to accept this offer. If they do, the real work will begin."
Larian knows even if the bid goes through there's a long road ahead to make Toys "R" Us back into the giant that it was, but he definitely has ideas, including making the store more interactive and giving it a theme park feel that allows kids to play and try out new toys.0comments
"I like challenges," Larian said. "I have some big, out-of-the-box ideas to save Toys R Us and grow the business if I'm successful in getting Toys R Us assets."
It seems this will not deter Larian, so we are likely to hear more from this in the future.