MGA Entertainment CEO Isaac Larian Launches Crowd-funding Campaign To Save ToysRUs

Posted: Mar 22 2018, 8:27am CDT | by , Updated: Mar 22 2018, 1:28pm CDT, in News | Toys

 
MGA Entertainment CEO Isaac Larian Launches Crowd-funding Campaign to Save ToysRUs
Photo Credit: Getty Images

Isaac Larian and investors put $200 million toward a $1 billion goal to save ToysRUs. Updated.

Plans of MGA Entertainment CEO Isaac Larian to buy the Canadian business of ToysRUs and about 200 US ToysRUs stores have circulated since the announcement of the wind-down of the storied toy retailer. Now Larian makes it official and turns the plan to save ToysRUs into a crowd-funding campaign at GoFundMe.

Larian and a group of investors have pledged so far $200 million. The goal is to raise $1 billion that would be used in the formulation of a bid to acquire all or some Toys"R"Us assets through the bankruptcy process. In the first 14 hours of the GoFundMe campaign, an additional $10,000 have been supplied by ToysRUs supporters.

"$1 billion may seem like a staggering goal, but it would take a very large sum to create a successful bid for the acquisition of such a large entity. If the $1 billion goal is reached, it would make this campaign the highest-funded crowdfunding to date," according to the announcement.

In addition to this initial contribution, Larian has pledged to commit 10% of all proceeds from Little Tikes purchases made between now and the end of this campaign. "If there is no Toys"R"Us, I don't think there is a toy business," said Larian.

Larian's view of the effect of ToysRUs going out of business is not shared universally. Toy analyst at the NPD Group calculates that the effect will be in the low digit percentage points to the toy industry overall.

"There is nothing quite like the joy and awe of a child walking through the aisles of a Toys"R"Us store. I want to preserve that innocent experience for future generations. We can't sit back and just let it disappear. Everyone deserves to be a Toys"R"Us kid," says Larian today.

He hopes to benefit from you nostalgia for ToysRUs to get a contribution to the #SaveToysRUs GoFundMe campaign. If this has any merit remains to be seen. You do not get any ownership in this new ToysRUs with your contribution. All you get when you contribute a $5-$49 pledge is a #SaveToysRUs bumper sticker. You also can't deduct the pledge in your taxes as it's not a charitable cause.

From the GoFundMe page: "Be advised that this is not a donation to a charitable cause, and there is no tax deduction available. It is a donation to a potential commercial venture. The funds raised would be added to other capital being gathered by the potential purchasers of some or all of Toys“R”Us. A donation to this campaign doesn't qualify you to claim equity in any potential acquisition; it simply means you want future generations to be Toys“R”Us kids." Find below the full list of contribution option on the GoFundMe page.

The ToysRUs Store Closing Sales have been postponed to Friday. Saving ToysRUs would need to happen fast, before everything is sold, including the stores.

Contributor pledge gifts are as follows:

$5-$49 pledge: #SaveToysRUs bumper sticker

$50-$99 pledge: #SaveToysRUs bumper sticker AND #SaveToysRUs Special Edition Num NomsTM 1

$100-$499 pledge: #SaveToysRUs bumper sticker, pin, AND #SaveToysRUs Special Edition L.O.L. Surprise! TM 1

$500-$999 pledge: #SaveToysRUs bumper sticker, pin, magnet, AND customized #SaveToysRUs Special Edition Little Tikes® Cozy Coupe.

$1,000-$4,999 pledge: #SaveToysRUs bumper sticker, pin, magnet, "I'll ALWAYS be a Toys"R"Us Kid" t-shirt AND Little Tikes® Build-a-House.

$5,000-$9,999 pledge: #SaveToysRUs bumper sticker, pin, magnet, "I'll ALWAYS be a Toys"R"Us Kid" t-shirt, AND Little Tikes® Super Slam 'n Dunk.

$10,000-$24,999 pledge: #SaveToysRUs bumper sticker, pin, magnet, "I'll ALWAYS be a Toys"R"Us Kid" t-shirt, invite to a local Toys"R"Us reopening block party AND a Little Tikes® backyard makeover. 1, 2

$25,000-$49,999 pledge: #SaveToysRUs bumper sticker, pin, magnet, "I'll ALWAYS be a Toys"R"Us Kid" t-shirt, invite to a local Toys"R"Us reopening block party AND a tour of the Ohio Little Tikes® factory – the oldest toy factory currently operating in the U.S. - including travel and accommodations. 1,2

$50,000-$74,999: #SaveToysRUs bumper sticker, pin, magnet, "I'll ALWAYS be a Toys"R"Us Kid" t-shirt, AND a personal block party for your friends and family including Little Tikes products, food and all associated items. 1

$75,000-$249,999: #SaveToysRUs bumper sticker, pin, magnet, "I'll ALWAYS be a Toys"R"Us Kid" t-shirt, invite to a local Toys"R"Us reopening block party AND attendance at a special taping of "Unboxed!" series including travel and accommodations. 1, 2

$250,000-$999,999: #SaveToysRUs bumper sticker, pin, magnet, "I'll ALWAYS be a Toys"R"Us Kid" t-shirt, invite to a local Toys"R"Us reopening block party AND toys for 5 years from Toys"R"Us. 1, 2

$1,000,000-$9,999,999: #SaveToysRUs bumper sticker, pin, magnet, "I'll ALWAYS be a Toys"R"Us Kid" t-shirt, invite to a local Toys"R"Us reopening block party, AND a signed thank you letter from Isaac Larian, CEO of MGA Entertainment, and "I helped save Toys"R"Us" hero plaque at a Toys"R"Us location of your choosing. 1, 2

$10,000,000+: #SaveToysRUs bumper sticker, pin, magnet, "I'll ALWAYS be a Toys"R"Us Kid" t-shirt, invite to a local Toys"R"Us reopening block party, a signed thank you letter from Isaac Larian, CEO of MGA Entertainment, AND Kid CEO for the Day experience including a trip to a southern California theme park, travel and accommodations, and Toys"R"Us store dedication naming rights for location of your choosing and toys for life from Toys"R"Us

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<a href="/latest_stories/all/all/2" rel="author">Luigi Lugmayr</a>
Luigi Lugmayr () is the founding chief Editor of I4U News and brings over 15 years experience in the technology field to the ever evolving and exciting world of gadgets. He started I4U News back in 2000 and evolved it into vibrant technology magazine.
Luigi can be contacted directly at ml@i4u.com.

 

 

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