Toys ‘R’ Us rejects bid from billionaire Isaac Larian: report

Toys “R” Us lawyers and advisers have rejected an offer from billionaire toy executive Isaac Larian because it failed to meet requirements outlined in the retailer’s ongoing bankruptcy court proceedings, The Wall Street Journal reported on Tuesday.

Larian, who founded MGA Entertainment, a California company best known for its Bratz dolls, offered $675 million for the chain’s U.S. store locations and another $125 million for its Canadian business. That offer would have allowed some of the company’s 735 U.S. locations to stay open, the Journal said.

The offer from Larian failed to meet the minimum terms that a bankruptcy court set for auction proceedings involving Toys “R” Us stores. Another round of store auctions is scheduled for Wednesday. Larian told the Journal that he had not been informed that his offer failed to meet established guidelines.

“If that’s the case, it’s really a shame that they’re going to let this company go into liquidation instead of at least responding and saying we need more or we need this,” he said.

Toys “R” Us is in the process of liquidating inventory from all of its U.S. stores. The toy retailer declared bankruptcy last September and is going out of business after failing to reorganize billions of dollars in debt or find a buyer for some or all of its stores.

The New Jersey-based brand has faced declining sales for years amid the rise of e-commerce competitors such as Amazon. FOX Business reported earlier this month that furniture store chain Raymour & Flanigan was among the entities that agreed at an initial auction round to purchase Toys “R” Us assets.

Larian expressed disappointed in March that other business leaders hadn’t stepped forward to save Toys “R” Us.

“It’s an American icon, and if  there is no Toys “R” Us, the whole toy business as a whole I believe will suffer greatly,” Larian told FOX Business’ Neil Cavuto on “Cavuto: Coast to Coast.”