Geoffrey, the giraffe, is seen on the side of a Toys “R” Us truck on March 17, 2005 in Colma, California.
Justin Sullivan | Getty Images
Toys R Us has a new owner – again.
Brand management firm WHP Global announced Monday that it has acquired a controlling stake in Tru Kids, the parent company of the Toys R Us, Babies R Us and Geoffrey the Giraffe brands.
“We are in the branding business and Toys R Us is the most trusted, trusted and loved toy brand in the world,” said Yehuda Shmidman, president and CEO of WHP, in an interview. “We are approaching a year when toys are on fire … And for Toys R Us, the United States is really a blank canvas.”
Shmidman has served as vice president of Tru Kids since 2019. Tru Kids, which is supported by Solus Alternative Asset Management and funds managed by the private equity group Ares Management, bought the brands and intellectual property of Toys R Us after entering with Chapter 11 bankruptcy protection in September 2017. Toys R Us ended up being unable to get out of bankruptcy on its own after a crippling 2017 holiday season, leading to liquidation.
Since then, Tru Kids has tried a number of strategies to increase momentum, including opening two pop-up locations in the United States with the help of the b8ta technology platform. But they closed earlier this year due to the mall’s poor traffic, which was especially suppressed during the Covid pandemic. For a period of time, the large retailer Target fed the Toys R Us’ website. Currently, all purchases on ToysRUs.com are redirected to Amazon.
“The restructuring has had a big impact on the company,” said Shmidman. “And so Covid is, I hope, once in a century. But now we are overcoming those two things. And the sky is the limit.”
In the future, WHP said it will manage the global Tru Kids business and guide its expansion. Toys R Us and Babies R Us together have more than 900 branded stores in more than 25 countries – in parts of Europe, Asia, Africa, Australia and the Middle East.
In North America, Shmidman said the plan is to open Toys R Us stores again – preferably a number before this holiday season. He said it could come in a variety of formats: flagships, pop-ups, airport locations or mini-stores inside stores at other retailers. WHP has not yet set a number for how many locations it plans to open in the U.S.
“There are so many malls that there will be no more in the future, so we don’t have to be there,” said Shmidman. “But we could be in shopping malls with traffic. … So, we really have an opportunity not only to capture that experience for the toys that people want, but also from where [people] wants to shop. This is going to be very interesting post-Covid. “
WHP is supported by a $ 350 million capital commitment from funds managed by Oaktree Capital Management.
The financial terms of the deal were not disclosed.