Isaac Larian, CEO of MGA Entertainment, placed a formal bid of $675 million for certain U.S. Toys ‘R’ Us stores and a $215 million bid for the retailer’s Canadian locations. The bid includes funding from other investors and banks.
The transaction would cover the 274 top-performing Toys ‘R’ Us and Babies ‘R’ Us stores in the U.S., according to New York Post. In Canada, the bid would encompass all 82 stores and the company’s trademarks. Larian is giving the retailer six days to respond.
Larian and other investors earlier pledged $200 million toward purchasing the chain to save as many as 400 stores as part of a $1 billion crowdfunding goal on GoFundMe. As of April 13, the effort had raised an additional $59,000.
Other companies made bids for more than 30 individual stores during a March 29 auction. Interested retailers included Target, Aldi, Big Lots, Golf & Tennis Pro Shop, Raymour and Flanigan and Ashley Furniture.
Toys ‘R’ Us has been attracting significant attention for its Asian business, drawing bids of more than $1 billion, according to Reuters. Some of the bidders may be interested in entering the Asia Pacific (APAC) toy market, where sales are expected to grow 6.3% annually over the next three years, according to Euromonitor International.
The toy retailer’s Asian operations received $80 million in incremental financing from noteholders, which is expected to help the unit grow its footprint and build inventory for the 2018 holiday season.