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Toys 'R' Us scraps bankruptcy auction, plans for re-organization

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Feb 6, 2019, 12:02 PM EST (Updated)

Don't count out Toys 'R' Us just yet, kiddos.

According to a report by The Wall Street Journal, the embattled company canceled its bankruptcy auction, as the hedge funds that originally put it out of business in the first place intend to breathe new life into the brand. That means a possible revamp of both the Toys 'R' Us and Babies 'R' Us brands.

That original auction would have resulted in the sale of the names "Toys 'R' Us," "Babies 'R' Us," and other intellectual assets like the store's iconic mascot, Geoffrey the Giraffe.

In an official court filing, the company outlined the plan for reorganization, explaining, per WSJ, “a new, operating Toys ‘R’ Us and Babies ‘R’ Us branding company that maintains existing global license agreements and can invest in and create new, domestic, retail operating businesses."

News of the popular toy retailer's closure surfaced back in March, simultaneously breaking the hearts of many children (and many children at heart) who grew up with the store in their lives.

Eight hundred locations in the U.S. were shuttered, leading to the termination of an estimated 300,000 jobs. Not long after, massive liquidation sales were underway, while competitors like KB Toys were ready to fill the vacuum. Soon after that, vacant Toys 'R' Us locations were serving as rave spots, at least in London.

In June, it was reported that the company's CEO, Jerry Storch, was looking into possible avenues of a reboot for Toys "R" Us. The latest news of a reorganization plan could be an extension of Storch's actions.

Whatever the reason, it looks as if we are entering a renaissance of sorts for the brick-and-mortar toy store. In late August, the WSJ broke the announcement that FAO Schwartz would be returning with a bigger and better location at 30 Rock in New York City.