Fairfax comes forward to buy “Toys R Us”
Among the new bidders for Canadian toy company Toys R Us, Fairfax Financial Holding has come forward to buy the business for US$300 million. The company is on a verse of bankruptcy, and is open for auction by interested buyers.
As revealed by the court paper, there is a “stalking horse” kind of auction where everyone can bid and the company will go to person who bids maximum. Fairfax offer has crossed the offer Isaac Larian who made it to US215 million maximum. Earlier he along with a group of other investors had offered US$675 million to buy 274 US stores.
It was declared in March that the toy company will liquidate its US store holdings owing to its bankrupt status. Larian said in a statement that anything that goes in favour of saving the store is good. It’s all about gaining back the business and popularity of the store. The store should offers its products to the users and its employees should continue the job. This should be the priority of anyone buying the business.
Fairfax is a well-known company engagement in casualty insurance, reinsurance and investment management. Its expertise is established in identifying undervalued companies and do appropriate investment to revamp the business. Its credibility is established in its investment in Blackberry in 2013 when everyone was doubtful about the future of the company.
Let’s see what Fairfax can do for the Toys R Us.