Toys 'R' Us Files For Bankruptcy

SHAKHZOD YULDOSHBOEV

WHP Global, a New York-based brand management firm, announced Monday it has acquired a controlling interest in Tru Kids Inc., the parent company of the Toys R Us, Babies R Us and Geoffrey the Giraffe brands.

WHP CEO Yehuda Shmidman said the investment in Toys R Us reflects WHP’s “belief and passion for the brand,” according to a statement. Toys R Us shuttered most of its U.S.-based stores amid mounting debt two years ago and the only two stores left closed in January due to the pandemic.

“We are thrilled to be taking the reins of the world’s leading toy brand at a time when the category is up 16% and consumer demand for toys is at an all-time high. This is a natural fit for WHP, as we can leverage our global network and digital platform to help grow Toys R Us and Babies R Us around the world,” Shmidman added.

‘Toys R Us and Babies R Us together boast more than 900 stores in over 25 countries, and going forward, WHP Global will be guiding the brand’s further expansion, Shmidman told CNBC.

WHP Global bought a controlling interest in Tru Kids and will now attempt to revive the Toys R Us brand in the U.S. (Photo by Tim Boyle/Getty Images)

Shmidman also said that he is optimistic about the company’s future. His firm is backed by a $350 million equity commitment, The New York Post reported.

“The restructurings took a big toll on the company,” Shmidman told CNBC. “And then Covid is, hopefully, once in a century. But now we’re getting past those two things. And the sky’s the limit.”

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