Controlling lenders have decided to revive the Toys R Us brand instead of breaking the iconic name into pieces to sell at a bankruptcy auction.
According to papers filed Monday in bankruptcy court, the retailer received multiple bids for assets including Toys R Us, Babies R Us, Geoffrey the Giraffe, website domains and others, but ultimately opted for a reorganization plan.
That proposal would create 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 under the Toys R Us and Babies R Us names.”
What the Toys R Us of the future might actually look like is still uncertain.
The announcement comes after Toys R Us announced in March that it would be liquidating its U.S. operations, endangering the jobs of more than 30,000 people.
With the news of the brick-and-mortar giant closing its doors, other companies such as Walmart were already taking aggressive steps to fill the $11 billion void Toys R Us would leave.
Walmart announced in early September that it was planning to increase its new toy selection in all stores by 30% and expand its website assortment by 40%.
Rivals like JCPenney and Kohl’s had also announced plans to enhance their offerings. Party City expects to open around 50 toy pop up stores.
Amazon is also “gearing up to take disproportionate share [of the toy market] this holiday season,” Jefferies analyst Stephanie Wissink said in a report last month.
CNN Wire contributed to this report.