WASHINGTON (dpa-AFX) - Isaac Larian, the CEO of Bratz doll-maker MGA Entertainment, along with several other investors have pledged a total of $200 million in financing and hope to raise additional $800 million through crowdfunding in order to save up to 400 of the Toys 'R' Us stores.
Larian said the retailer has an iconic place in American culture and Americans can't just sit back and let it disappear. The investors have created the hashtag SaveToysRUs on social media, which has been trending.
Larian expects the toy industry to suffer without Toys R Us. 'People say that if there is no Toys R Us another retailer will pick up the slack. I don't think so because they don't have the room,' Larian said.
MGA Entertainment relies on Toys 'R' Us for about 18 to 19 percent of its worldwide sales, which translates to nearly 1 in every 5 sales.
Larian expects about 130,000 U.S. jobs to be at risk, which includes not only employees at Toys R Us but also at suppliers, distribution centers, trucking companies and other firms related to the retailer.
MGA Entertainment would have to lay off workers at an Ohio plant that makes MGA's Little Tikes toy vehicles, Larian said.
The liquidation of Toys 'R' Us stores would also severely impact Mattel Inc. and Hasbro Inc. as these toy giants will not have a large retail chain that concentrates only on toys and dolls.
Meanwhile, Charles Lazarus, who founded Toys 'R' Us 70 years ago, died Thursday. Lazarus, who was 94 years old at the time of death, no longer held a stake in the chain. He started the company in 1948 when he was 25.
'There have been many sad moments for Toys 'R' Us in recent weeks, and none more heartbreaking than today's news about the passing of our beloved founder,' Toys 'R' Us said in a statement. 'He visited us in New Jersey just last year, and we will forever be grateful for his positive energy, passion for the customer and love for children everywhere. Our thoughts and prayers are with Charles' family and loved ones.'
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