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Toys “R” Us – Delaware and Geoffrey LLC (collectively the Selling Debtors) filed with the U.S. Bankruptcy Court a motion to approve selling Debtors’ motion for entry of an order establishing bidding procedures for the sale of the Debtors’ U.S. intellectual property assets, including the U.S. E-commerce assets, approving the sale of the U.S. Intellectual Property Assets, including the U.S. e-commerce assets.
The motion explains, “The Selling Debtors maintain a portfolio of intellectual property assets, including the Toys “R” Us trade name, trademarks, service marks, mascot, a substantial private label business, various registered domain names, an e-commerce platform, a baby registry, and customer and email marketing lists. Substantially all of these intellectual property assets are owned by Geoffrey, a subsidiary of Toys Delaware, and licensed from Geoffrey to the company’s operating affiliates (both Debtors and non-Debtors). Certain other limited assets are owned by Toys Delaware, and certain subsidiaries, including Debtors Toys “R” Us (Canada), own their own intellectual property.
The Selling Debtors, in consultation with their stakeholders, believe it is prudent to formally begin a process to maximize the value of their U.S. Intellectual Property Assets….At this time, the Selling Debtors do not seek to sell (i) any right, title, or interest to the Toys “R” Us, Babies “R” Us, Kids “R” Us, or any other trademarks, service marks, trade names, or intellectual property in or arising under the laws of any non-U.S. jurisdiction….Since the filing of the Wind-Down Motion, the Selling Debtors have received numerous inquiries from parties interested in purchasing the Intellectual Property Assets. By this motion, the Selling Debtors intend to initiate a formal sale and marketing process solely for the U.S. Intellectual Property Assets and establish a timeline for all parties to follow in bidding on such assets.
By separate motion, the Debtors are seeking Court approval of the retention of Consensus to advise the Selling Debtors related to these sales. Accordingly, the Selling Debtors are coordinating the U.S. Intellectual Property Bidding Procedures timeline with Consensus to ensure that the Selling Debtors are able to maximize the value of the U.S. Intellectual Property Assets. At this juncture, the Selling Debtors, in consultation with their advisors, have determined that the best way to maximize the value of the U.S. Intellectual Property Assets is to engage in a sale process on the timeline contemplated by this Motion.
The Selling Debtors believe that any delay may diminish the value of the U.S. Intellectual Property Assets and, significantly, crucial personnel needed to assist in the diligence process and transfer of the U.S. Intellectual Property Assets will soon be leaving the company.” The motion proposes the following general timeline: stalking horse deadline on May 25, 2018; bid deadline on June 15, 2018; notice of qualified bids on June 18, 2018; U.S. intellectual property auction on June 18, 2018; sale objection deadline on June 13, 2018; hearing to designate successful bidders on the ‘U.S. Intellectual property sale hearing on June 20, 2018.” The Court scheduled a May 24, 2018 hearing on the bid procedures motion.
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