MGA Entertainment CEO, Isaac Larian is still going ahead with his bid for more than 300 Toys R Us stores across the US and Canada, despite falling desperately short of the $1bn crowdfunded goal.
The campaign led by the billionaire toy executive has hit just $200,059,000, with the initial $200 million coming from Larian’s own pocket.
Isaac Larian said on Thursday that he is disappointed but still plans to formally submit a bid this week for more than 300 stores in the US and Canada. According to the MGA CEO, other toy companies initially were interested in joining the crowdfunding effort, but backed down.
Larian, who said he would use his own money for the bid, added that he was baffled and said they were public companies thinking about the short term.
He told The Associated Press that he plans to submit to the bankruptcy court on Friday a formal bid of $675 million to buy 274 Toys R Us stores and use the brand name. The money will come from his own coffers, other investors and bank financing. He, along with other investors, also plans to bid $215 million for the Canadian business of 82 stores.
Larian has made efforts to rally the industry to save the toy retailer from liquidation since news broke at the beginning of the year. The liquidation of Toys R Us “is going to have a long-term effect on the toy business,” he said. “The toy industry is going to suffer.”
Bob Wann, the CEO of private toy company Playmonster LLC and chairman of the Toy Association expects a flurry of acquisitions of toy companies but says the industry will be able to regain any lost sales in the next few years.