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Billionaire Brainstorm—or Boondoggle? MGA’s Issac Larian Enters Formal Offer to Purchase U.S. and Canadian Toys ‘R’ Us Stores and Remake Them Into a “Mini Disneyland in Every Neighborhood”

Billionaire Hopes to Preserve “Toys ‘R’ Us Experience” for His Grandson’s Generation

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Isaac Larian— MGA Entertainment mogel and owner of the “Bratz” line of dolls (Photo: Mediatly)

In a bizarre twist to the ongoing Toys ‘R’ Us bankruptcy saga, billionaire Isaac Larian of MGA Entertainment has offered to purchase over 280 of the 735 Toys ‘R’ Us locations currently facing imminent and permanent closure for a whopping $887 million. Why, you might ask, would ANYONE want to spend all that money on what appears to be a dying “brick-n-mortar” business model showing NO hope of surviving in today’s digital “get it now” Amazonian shopping age? For the latest on this unexpected and constantly evolving story, we refer you to a story posted yesterday over on the CNN website (HERE) which reveals the following surprising intel:

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“Isaac Larian said Friday that he’s entered a formal offer of $675 million to buy many of the Toys “R” Us stores in the United States, along with an additional $215 million for Toys “R” Us stores in Canada. Larian is looking to buy more than 200 of the remaining 735 locations in the US, and almost all of more than 80 locations in Canada, a spokesperson said. Larian, who runs MGA Entertainment, will use his own money for the bid, along with financing from banks and additional investors, according to a press release. ‘The liquidation of Toys ‘R’ Us is going to have a long-term effect on the toy business. The industry will truly suffer,’ he said in a statement. ‘The prospect of bringing the Toys ‘R’ Us experience to a new generation, my new grandson’s generation, is enough to motivate me to Save Toys ‘R’ Us.’ Toys “R” Us declined to comment.”

Can you imagine being ready, willing and ABLE to spend $887 million dollars—of your own money—to prevent some 280 Toys ‘R Us stores from closing? Is Larian truly serious? It appears so. The CNN article goes on to reveal that the billionaire’s long-term strategy for saving 280 failing stores goes far beyond providing a heartfelt or nostalgic shopping “experience” for his grandson’s generation. Here’s what his plans REALLY are:

Larian’s vision for Toys ‘R Us includes turning its stores into entertainment hotspots. ‘We will make Toys ‘R Us an experience in and of itself; a fun and engaging place where families can spend an entire day,” he said in his statement on Friday. ‘Imagine a mini-Disneyland in each neighborhood.”

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Been There, Done That— Larian’s concept of converting old Toys ‘R’ Us stores into “Mini-Disneylands” has already been tried—and failed. This one, the chain’s flagship store in New York City’s bustling Times Square district, was big enough to fit a ferris wheel inside! Guess what? Yup. It’s closed now. If this mega-store concept didn’t work in Times Square, with all of its never-ending foot traffic, how could it succeed elsewhere? How much do you think they’d have to mark-up TRU toys to pay for all of this? Perhaps Larian should give his ambitious plan a teeny bit more thought. (Photo: tripadvisor) Click to enlarge.

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Can You See Them NOW?— Before closing, the TRU flagship store in NYC also had the added benefit of a giant, wraparound video marquee. Can you imagine something like this surrounding Larian’s proposed 280 “mini-Disneylands” in the U.S. and Canada? Would such a monumental investment in time, material, and CASH really be worth it? Or is the lure and ease of “one-click” and “add to cart” online shopping simply too powerful for “brick-n-mortar” retailers to overcome? (Photo: tripadvisor) Click to enlarge.

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Welcome to Barbie Town— You’ve heard of the famous (also now gone) “Barbie Aisle,” right? Well, how about an entire Barbie TOWN? This amazing retail display was also in the NYC TRU store before it closed. Imagine a similar structure built by Hasbro called the “GIjOE PX” or something like that, full of Joes, Jeeps, equipment sets and more. Hey, we can dream, can’t we? (Photo: tripadvisor) Click to enlarge.

Bottom Line: This is all so FASCINATING. And hopeful. And exciting! But will ANY of it actually come to pass? Will Larian’s offer be accepted? Will he really spend even MORE of his own money to convert a bunch of aging Toys ‘R’ Us stores into 280 “mini-Disneylands?” It’s been tried in major cities already, and sadly, it’s failed. To be honest then, its doubtful much will come of this new development. But don’t lose hope, dear readers. We’ll keep you updated as this ever-changing, high-stakes, and “quixotic” tale of money, family, and TOYS continues to unfold. Stay tuned!

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