Toys 'R' Us could be coming back

DAYTON, Ohio -- Toys "R" Us may be returning, but the details aren't yet set in stone.

A bankruptcy court filing from Tuesday says Toys "R" Us is scrapping the auction that would sell remaining assets after liquidation sales ceased at the end of June.

Geoffrey LLC, a subsidiary of Toys "R" Us that owns the intellectual property, said in a statement late Tuesday that a group of investors led by existing secured lenders would acquire the assets.

The hedge fund group plans to establish a "company that maintains existing global license agreements and can invest in and create new, domestic, retail operating businesses under the Toys 'R' Us and Babies 'R' Us names."

"The new owners are actively working with potential partners to develop ideas for new Toys 'R' Us and Babies 'R' Us stores in the United States and abroad that could bring back these iconic brands in a new and re-imagined way," the statement said.

The company, like many others, suffered as consumer shopping habits changed and online sales became more common. Before liquidating, the toy and baby stores had $5 billion in debt.

Story Filed By Cox Newspapers

For Use By Clients of the New York Times News Service