Toys R Us has rejected a bid from Isaac Larian, the CEO of MGA Entertainment, that would have kept open some of the bankrupt US retailer’s stores.
The $675m bid from Larian for the company’s US stores was ‘significantly below’ the value Toys R Us expected to earn through its liquidation, according to a person familiar with the matter.
Larian had also offered the company $215m to purchase its stores in Canada.
Larian, who Forbes magazine estimated had a net worth of $1bn, said he had noy yet been notified that Toys R Us had rebuffed his offer. He added that if it was true it “is very disappointing.’
“It is our hope and expectation that we can continue to participate in the bid process, so we can keep fighting to save Toys R Us,” he said. “We feel confident that we submitted a fair valuation of the company’s US assets in an effort to save the business.”
News of the rejection was first reported by Wall Street Journal. Toys R Us has declined to comment.