Larian-led Campaign Fails to Reach Target

The crowd-funding campaign led by toy tycoon Isaac Larian has failed to revive the struggling toy maker Toys R Us.

The campaign only came up with $59,000 raised in three weeks, not including the $200 million pledged by Larian, who is a billionaire toy executive, with other investors. The $59,000 figure includes three pledges only amounting to $1000 each, about a couple dozen $101 and $500.

Larian stated that other toy companies were initially interested in joining the initiative. However, they backed down. Larian planned to use the money for the bid, and called the backing down of other companies disappointing. He described them as public companies that only think about the short term. However, he said that he was still inclined to make a formal bid for over 300 stores in the US and Canada.

“I never thought we’d raise that amount, but I wanted to get people involved to show that there’s interest in Toys R Us,” said Larian.

According to Larian, the liquidation of Toys R Us “is going to have a long-term effect on the toy business.”

“The toy industry is going to suffer,” he added.

Many big toy makers, such as Mattel and Hasbro, have already negatively affected by the struggles that Toys R Us is facing. The planned liquidation would have a bigger impact on smaller toy companies that have heavily relied on the toy chain.

Bob Wann, who is the chief executive of the toy company PlayMonster and the chairman of the Toy Industry Association trade group, believes that a flurry of toy company takeovers will come. He was optimistic on the prospect of recovery, saying that the industry would regain any loss in the coming years.

Larian has attempted to save 400 US stores, which were half of the total numbers of stores that are set to liquidate in the coming weeks.

MGA Entertainment, the producer of the Bratz dolls and Little Tikes based in Van Nuys, California, has 1 every 5 sales of its products linked at a Toys R Us store.

Toys R Us is currently shouldering $5 billion debt and is being hurt by shifting currents like online shopping. The liquidation of the company would affect over 30,000 jobs.

Larian is still determined to bid for the company, though, giving the company six days to respond.

“They either accept or reject it by April 18. Toys R Us is like a sick patient in the ICU that needs an operation right away,” said Larian.

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