This Billionaire Is Trying To Save Toys R Us, And His Overwhelmingly Generous Bid Is Insane
Toys R Us has spent the last several months spiraling into a gutter of bankruptcy and liquidation — but one billionaire set his sights on rescuing the company, and his bid had the massive business floored!
Toys R Us: Crashing To The Ground
Toys R Us may seem like a dying business, but it was a staple in the childhood of millions of people across the globe. It is also one of the largest toy store chains
in the world, even claiming a location in the center of New York City’s famed Times Square. However, Toys R Us is currently facing bankruptcy, and it doesn’t take a genius to figure out why.
Technology Takeover: The Rise Of “iGen”
The current generation of children is appropriately nicknamed “iGen.” In other words, they are tech-savvy, glued to their devices, and are constantly seeking the newest, shiniest, and most expensive pieces of tech
gear. Rather than reaching for a bicycle or a Barbie doll, kids are immersed in virtual worlds and social media — and it has posed a significant threat to Toys R Us.
Predictable Collapse: Signs And Symptoms
Toys R Us has shown signs of collapse since shutting down their FAO Schwarz flagship store just outside of Central Park in the middle of 2015. The company has only continued to fall apart and is
in a severe financial crisis. Unless they are able to attract more customers, the company will be forced to close hundreds of locations worldwide, but one billionaire made an incredible effort to keep the chain alive.
Isaac Larian: Toy-Tycoon Billionaire
Isaac Larian is the 64-year-old CEO behind Bratz Dolls, Little Tikes toys, and MGA Entertainment: the largest toy company in the entire world. Larian’s reward isn’t just making toy-loving children happy
— his paycheck is massive, and his net worth is $1.17 billion dollars. Needless to say, Larian has money to blow — and he’s got his sights set on his struggling rival.
Larian’s Plan-A: Crowdfunding For The Company
Despite his immense riches, Larian and other investors pitched in only $200 million of the necessary $1 billion required to purchase part of the company and set up a GoFundMe to attempt to raise the rest. He offered incentives to those who would
be willing to pitch in: a variety of toys from MGA Entertainment. Ultimately, his crowd-funding project flopped, raising only about $62,000 towards their bid. Larian realized that he would have to step up his game — and act quickly to save the sinking business.
Shattered Efforts: Implementing Plan-B
When it became clear that the public wouldn’t be willing to rescue the beloved toy company, Larian’s fellow investors grew concerned that their efforts were all for nothing. However, Larian wasn’t
about to let the company slip away so easily — and he took matters financial matters into his own hands, offering up a massive bid that was too tantalizing to refuse.
A Blowout Bid: $890 Million
The billionaire offered up a bid of $890 million for 300 stores across the U.S. and Canada. Although seemingly any crumbling business would be quick to reap the fortune, Toys R Us took longer to respond that Larian expected.
“I followed through on my part…it’s up to them to accept,” he Tweeted. “Time is of the essence.” But Toys R Us wasn’t biting his bait — and he strategically dragged the lives of thousands of Americans into the conversation.
Larian’s Intentions: Save Thousands Of Jobs
Larian argued that his bid was not a selfish effort, but that he intended to try and save the 130,000 jobs that would be lost during the closing of hundreds of stores in the franchise. “Not much time is left,”
he threateningly wrote, even going as far as to tag Donald Trump in his messages about job security. But Toys R Us had a little too much pride for their own good — and Larian is reeling at their response.
Larian’s Offer: Shut Down By Strict Standards
While Larian said that he made a “bona fide, fair offer” to the dying corporation, Toys R Us refused to accept Larian’s generous offer. According to them, though, it wasn’t necessarily because they wanted to — rather, auction rules
set by a judge invalidated Larian’s bid. In fact, Toys R Us is still desperately seeking out someone to snatch up some of their stores at auction. Is it too late for the once-famed toy company to snap back?
Continued Attempts To Rescue The Dying Company
While Toys R Us was once heaven for toy-addicted children, technology has driven their products out of households across the nation — and not even the most dedicated billionaire can seem to save them. Toys R
Us is placing their hopes on future auction bids and selling branches of their business across the world — and with a little luck, they may be able to salvage some of their nostalgic toy stores!
