It was four years ago today — June 29, 2018 — that the final store from the original version of Toys “R” Us closed its doors for the last time.
While the company continues to exist in various forms around the world, including more than 900 stores and e-commerce sites, Toys “R” Us is in the midst of a comeback bid in the U.S. under the ownership of WHP Global. While the company that now owns the Toys “R” Us and Babies “R” Us brands continues working with licensing and retail partners to get Geoffrey the Giraffe back into the minds of families, remnants of the old Toys “R” Us are still smoldering.
Just over a year ago, the Toy Book reported that the case against former Toys “R” Us leadership was slowly moving toward a jury trial. As of May 2021, it was expected that a trial would take place by November as attorneys representing the TRU Creditors Litigation Trust continued their push to put former Toys “R” Us execs in front of a jury while leaning heavily on the much-discussed bonuses received by certain executives in the days prior to the former toy giant filing for Chapter 11 bankruptcy protection in 2017.
A jury trial was one of the initial requests in the 111-page complaint that was filed in New York in 2020, alleging “fraud, misrepresentation, and deceit,” “negligent misrepresentation,” “negligent concealment and negligent omission,” and various other breaches of fiduciary duty by some of the company’s top executives and corporate directors from its private equity owners — including KKR, Bain Capital, and Vornado Realty Trust — in connection with the bankruptcy and liquidation of the retailer as it played out between 2017-2019.
By January 2022, the fraud allegations deepened with a 426-page filing and word that a treasure trove of emails had been discovered that could be potentially damning to the defendants, including former Toys “R” Us CEO and Chairman of the Board David Brandon; former Chief Financial Officer Michael Short; and Richard Barry, who served as executive vice president and global chief merchandising officer, among others.
Now, following months of additional back and forth, including a colorful exchange with Judge David J. Novak last month, U.S. Bankruptcy Judge Keith Phillips ruled on Monday that a jury trial can indeed move forward on some counts from the original filing.
The defendants have denied any wrongdoing and a firm date for the trial has not yet been set.
Later this year, the new version of Toys “R” Us will open store-within-a-store concepts at more than 400 Macy’s locations. A U.S. flagship store opened at American Dream in New Jersey last December.
