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UPDATED: Toys R Us Rejects Isaac Larian $890 Million, 11th Hour Bid

Liquidation and Wind-Down of 735 Stores Will Continue
April 17, 2018
Toys R Us appears to be back on the verge of permanently closing its doors. Attorneys and advisers for the bankrupt retailer have reportedly rejected MGA Entertainment Inc.'s bid of $890 million for 274 U.S. stores and the Canadian operations, according to various news reports.

"I haven't yet been notified of the bid rejection but if this is true, it is very disappointing," said Isaac Larian, CEO of MGA Entertainment and creator of Little Tikes. "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., one of the world's leading privately held toy and entertainment companies, put in a formal bid of $675 million to buy both the U.S stores as well as $215 million to buy the Toys R Us stores in Canada late last week. That bid was reportedly rejected because it didn't meet the minimum threshold to be a valid bid.

Without a going concern bid, Toys R Us U.S. is continuing to proceed with a shutdown and liquidation of its remaining 735 stores in operation encompassing an estimate 29.3 million square feet of mostly big box retail space. That is expected to be completed by June 30.

Toys R Us is continuing to pursue a "going concern" reorganization and a sale process to find buyers that will continue to run it Canadian business and operations in Asia and Central Europe.

At a hearing last Thursday before Larian's bid came in, U.S. Bankruptcy Judge Keith Phillips approved the sale of 44 of stores, while postponing consideration of several other leases until a hearing later this month to consider objections by various parties.

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