Toys R Us cancels bankruptcy auction, plans comeback for brand

National News
Toys R Us Store Closings_1538571070438

FILE – In this Sept. 19, 2017, file photo, shoppers walk into a Toys R Us store, in San Antonio. Toys R Us says it will be closing some U.S. stores and converting others to cobranded locations as it continues to deal with its financial restructuring following its bankruptcy filing. (AP Photo/Eric Gay, File)

WASHINGTON (AP) – A group of investors is planning a comeback for Toys R Us, in the latest twist for the troubled retail brand.

The group, made up of secured lenders, said Tuesday it’s scrapping an auction for intellectual property assets because it didn’t receive any bids that were better than its own.

The investors said they’ll work with potential partners to develop new ideas for stores in the U.S. and other countries “that could bring back these iconic brands in a new and re-imagined way.”

The reorganized company will control trademarks, e-commerce assets and data related to the Toys R Us and Babies R Us brands.

Toys R Us liquidated its U.S. business earlier this year, after filing for Chapter 11 reorganization following a leveraged buyout that hobbled the company.

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