The new owners of the Toys “R” Us brand are hoping the toy seller’s spin through bankruptcy will allow the tarnished-but-beloved brand to succeed in a depressed retail environment, and reap long-term return, WSJ Pro Bankruptcy reported. The new owners—the same group of hedge funds that pulled the plug on Toys “R” Us’s reorganization this year—are slated to become the owners of everything from the Toys “R” Us and Babies “R” Us names to the rights of company mascot Geoffrey the Giraffe and other licensed brands such as Imaginarium. The new ownership group, lenders who own a big chunk of Toys secured debt, is made up of about 10 hedge funds, most prominently among them Solus Alternative Asset Management, Angelo Gordon and Franklin Mutual Advisers. Snow Park Capital Partners is a holder of a smaller position, court papers show. The hedge funds are betting that Toys “R” Us will have a future that is brighter than the market expects. Instead of unloading the brand at a bargain price in a down market, the owners are hoping to reboot Toys “R” Us stores with the hope of ultimately reaping a higher recovery somewhere down the line.
