Brand Management Company Acquires Toys R Us Parent Company

The deal comes nearly two months after the two remaining Toys R Us stores closed.

NEW YORK – Editor’s Note: The video above is from February 1, 2021.

A New York-based brand management company that already owns Anne Klein and Joseph Abboud is taking a majority stake in the parent company of iconic brands Toys R Us and Babies R Us.

Yehuda Shmidman, co-founder, chairman and CEO of WHP Global, declined to offer the terms of the financial deal as part of the deal with Tru Kids Inc., which closed on Friday.

Tru Kids was formed in January 2019 when it acquired the intellectual property of Toys R Us during its liquidation in 2018. Shmidman has been Vice President of Tru Kids since early 2019.

The deal, announced on Monday, comes nearly two months after the only two Toys R Us stores that were part of a small attempt to return to the United States by the iconic toy chain closed. Both stores, which opened in November 2019, were based in shopping malls.

The measures come as physical stores, especially stores in shopping malls, have been hit by low customer traffic amid the pandemic. However, overall toy sales were on the bright side, having jumped 16% last year as parents seek to entertain children while they are at home during the pandemic, says NPD Group Inc., a company market research.

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The US Toys R Us online activity remains operational. And outside of the United States, Toys R Us and Babies R Us generate over $ 2 billion in global retail sales annually through nearly 900 branded stores and e-commerce sites in more than 25 countries.

“Our investment in Toys R Us reflects our belief and our passion for the brand,” said Shmidman. He noted that the US business will include both online and physical stores, although the strategy is still under development. the business is a billion dollar opportunity.

“Could it be a store in a store?” Could it be a pop-up store? Could it be an airport store? “Shmidman said.” We explore everything. “

Cathy W. Howerton