(CNBC)– The top lenders of Toys ‘R’ Us have decided to cancel the bankruptcy auction of its assets and instead plan to revive the Toys ‘R’ Us and Babies ‘R’ Us brand names, a court filing on Monday showed.
The bankrupt retailer’s debtors aim to open a new branding company that maintains existing global license agreements and can invest and develop new retail shops.
The bids were not superior to the plan to revive the brand as it did not offer “probable economic recovery” to creditors as well as benefits to stakeholders who would maintain the brands under the new independent U.S. business, the court filing showed.
Toys “R” Us filed for bankruptcy in September of last year, hoping to restructure some $5 billion in debt. However, the company changed course in March, saying it would sell its operations in Canada, Asia and Europe, and shut down in the United States.