MGA Entertainment wants to rally industry to bid on Toys ‘R’ Us Canada

March 14, 2018 6:02 PM

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The Canadian division of Toys “R” Us filed for bankruptcy along with its U.S. unit, but was expected to find a buyer for some of its assets.

Larian said he would put his own money into the effort and a bid will be made on Thursday. That’s when Toys “R” Us has a hearing in bankruptcy court. He declined to say how much money the group has at its disposal, but said that it hired UBS Group AG as an adviser. Moinian Group, a New York-based real estate developer, is working with MGA on an offer, CEO Joseph Moinian said in an interview.

The U.S. unit has stopped paying vendors in recent days and has been making preparations for winding down the business. Toys “R” Us entered bankruptcy in September and has struggled to find a buyer or reach a debt-restructuring deal with lenders.

The Canadian division, which has about 80 stores, filed for bankruptcy along with the U.S. unit. But it was in better financial health and expected to find a buyer for some of its assets.

“Canada is a good business,” Larian said. “They run it efficiently and have good leadership.”

Also read: Canada wraps up best-ever Winter Paralympics at Pyeongchang closing ceremony


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