This just in: Toys R Us has turned down Isaac Larian's bid to buy the company. The Globe and Mail has just run this headline: "Toys ‘R’ Us turns down bid for stores from MGA Entertainment: source". Here is the opening paragraph:
Bankrupt retailer Toys “R” Us has rejected an $890 million (622.5 million pounds) bid for some of its U.S. stores and locations in Canada from the CEO of Bratz doll maker MGA Entertainment Inc, a person familiar with the matter said on Tuesday.
Assuming the report is accurate, why does Isaac Larian need to purchase a broken brand when he can create a new one? The purpose of his mission was not to purchase Toys R Us but to purchase it in order to save the toy industry.
Well, he can accomplish that without purchasing Toys R Us. The empty stores are there.
The veteran sales force is going to be out of work and looking for jobs. He can create a retail brand that is all about his vision. In other words, why refurbish a broken business model when he can create a new one that bears a fresh culture…his culture.