Toys "R" Us comeback possible
Wednesday Toys "R" Us investors announced a possible comeback. The controlling group of the toy store cancelled plans for a bankruptcy auction.
What happens next is still up in the air. This bankruptcy auction cancellation means that even though all 740 U.S. stores closed, and all workers were laid off months ago, there is hope for a future generation of Toys "R" Us kids.
13abc spoke with an expert to find out how a relaunch is possible.
Ho Shin is an assistant professor in the College of Business at BGSU. The demise of Toys "R" Us is an issue he's been following from the start.
"Simply speaking, the bidding price was less than the controlling groups expectation. So, they concluded that we can make more money by running the company by ourselves rather than selling off to that bidder," said Shin.
What would be different this time around? Shin thinks the controlling group needs to re-work the business strategy.
"Their success depends on how well new Toys "R" Us will be able to differentiate itself from other competitors. That is a key factor," said Shin.
Shin believes the nostalgia of the Toys "R" Us brand is its saving grace, comparable to the miracle return of Twinkies.
For now, no one really knows what the future holds for Toys "R" Us. We'll have to wait and see what decisions the controlling group makes and if a new, better business plan changes the store's fate after its previous failure.
It's safe to say, Toys "R" Us lovers can expect some kind of comeback.