Could 1,000 Pop-Up Stores And Toys R Us' Inventory Revive This Old Toy Brand?

A defunct toy chain is looking for a new lease on life — and the inventory of Toys R Us may be what puts it back in the game.

Strategic Marks, which owns KB Toys, is considering taking advantage of Toys R Us' bankruptcy by partnering with its toymakers to offer a potential solution regarding where to put the inventory that was originally meant for Toys R Us shelves, CNN reports.

Suppliers like Hasbro Inc. and Mattel have suffered since Toys R Us announced its U.S. liquidation, with shares dropping 3% and nearly 5%, respectively, after the news broke.

KB Toys, which was acquired by Strategic Marks from Bain Capital in 2016, plans to open 1,000 pop-up shops across the U.S. during the next Black Friday and holiday season, offering the toy suppliers a way to recover from sales lost during Toys R Us' downfall, CNN reports.

KB Toys does not have plans in place to take over vacant Toys R Us leases, but the strategy could prove beneficial for landlords in search of fresh tenants to fill vacancies.

In other news, Deutsche Bank AG analysts report up to 26 Toys R Us stores may now hold little to no value. While the stores were estimated to be worth $618M in 2016, if they were vacated and re-leased, the report said this value would drop by a third due to the ongoing struggles in the retail sector and the risk it represents, Bloomberg reports.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

Wall Street Impatient For Big Tech Returns On Data Center Spending

As AI Adoption Ramps Up, Half A Million Property Managers Are In The Crosshairs

Treasuries Hover Around 4.7% As Wall Street Questions If Warsh Is A 'Dove In Hawk's Clothing'

Avison Young Had Assets Frozen By Bank Over Unpaid Taxes

Philly Retail Momentum Spills From Rittenhouse Into Northern Liberties

Camden Property Trust Sells West Coast Portfolio, Clears $1.5B Target

Churchill Downs Plans To Sell 9 Casinos, Focus On Horse Racing

Bringing Stability And Savings To CRE Insurance Through Working Layer

More Hotel Owners In Need Of Cash Are Getting It From The Big Brands

Forget Buildings, Retailers Are Leasing Environments

Former Arms Dealer Targeting Heartland Apartment Takeover Files For Bankruptcy

SEC Charges REIT, Its Founders With Alleged $152M Fraud Scheme