Toys 'R' Us May Come Back To Long Island In Surprise Move

Toys "R" Us could be making a comeback in Long Island after closing all of its stores across the country, according to several reports.

The retailer filed court papers this week that cancelled a bankruptcy auction with the goal of creating a "a newly-established, independent U.S. business, including, without limitation, expected expansion of employment."

The company felt that its bids in the auction were insufficient and "were not reasonably likely to yield a superior alternative," according to records filed with the U.S. Bankruptcy Court for The Eastern District of Virginia.

The company posted a message on its Twitter page saying to, "stay tuned here for news and information on the next chapter for Geoffrey and the iconic Toys R Us brands. #TRUBeContinued"

The move comes months after thousands of Toys "R" Us workers lost their jobs when stores throughout Long Island and the United States finally closed after a year-long battle to keep the stores open.

Despite the efforts from billionaire CEO Isaac Larian, Toys R Us did not accept his bid to save 274 U.S.-based stores and the thousands of jobs they support.

Larian would also have kept the company's Wayne, NJ, headquarters open as part of the bid CNNMoney reported recently. Between 7,000 to 10,000 jobs would have been saved if the headquarters and stores remained open.

Toys R Us filed for Chapter 11 bankruptcy in September and announced March 15 it would close or sell all of its 735 U.S. stores. Overall, about 31,000 people were expected to lose their jobs, including 1,100 at the Wayne headquarters.

The bankruptcy filing came amid slumping sales and mounting debt, which grew to about $5 billion. The once-popular chain faced increasing competition from Amazon, Walmart and Target. The chain was set to close about 180 of its stores, or about 20 percent.

A federal bankruptcy judge ruled late last year that Toys R Us may pay 17 executives about $14 million in incentive bonuses if it hits a certain earnings amount. Attorneys representing the company argued that the bonuses would help executives focus on increasing sales during the past holiday season.

Toys R Us began liquidating inventory at 170 of stores nationwide,including those on Long Island, in February.

The company began "winding down" operations at its remaining U.S. stores about six weeks later.

With reporting by Dan Hubbard, Kara Seymour and Eric Heyl, Patch Staff
Photo: Getty Images