Failed retail giant Toys R Us has set the stage for a possible comeback by canceling a bankruptcy auction, The Wall Street Journal reported Tuesday.
That auction was set to sell off intellectual properties like brand names, website domains, and the well-known Geoffrey the Giraffe mascot. But a proposed reorganizational plan would instead allow the company to relaunch a retail business using those assets, the publication reports, citing court filings.
Earlier this year, the toy superstore finished the closure of its retail locations, a move that affected more than 700 stores and tens-of-thousands of jobs.
At the time, Toys R Us left hints that its retail presence may return, indicating on social media that there would be “a next chapter for Geoffrey and the iconic Toys R Us brands.”
Court papers cited by the Journal say that there was a market for selling Toys R Us’ intellectual property, but that such a sale was “not reasonably likely to yield a superior alternative” to a plan filed in September.
That plan “contemplates 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.”