Ellia Kassoff the company Strategic brands announced that the company’s plan to relaunch Kay Bee Toys – once Toys R Us’ biggest toy competitor – have been accelerated following the impending closure of TRU. Kassoff seems extremely optimistic that a revived KB could take TRU’s place in accounting for around 20% of all toy sales in the United States. Keep reading for more information! From LinkedIn:
As some of you know, our company Strategic Marks, LLC acquired KB-Toys about a year ago. During this time we have worked on several models to resurrect the “Great American Toy Store” and to ensure the stores can compete with Toys R Us, other brick and mortar stores as well as retail on line. Well, with Toys R Us gone this week, we’ve now accelerated our business plan and hope to have our stores up and running before Christmas. We are in talks with many toy manufacturers as we try to figure out how best to support them and the loss of 20% of the US toy market due to the Toys R Us liquidation. We believe we will have the infrastructure in place and [hopefully] save the toy industry. If you are a toy manufacturer or distributor, or a former associate of KB Toys, please feel free to call us at: 949-424-1664 or email us at: [email protected] We hope to help the industry and at the same time resurrect the amazing name KB Toys!
Strategic Marks specializes in exploiting “zombie marks”, meaning marks that have been discontinued for three years or more and are therefore available under US trademark law. It has shown some success in the past in reviving some stale brands like Hydrox Cookies, which in its original incarnation actually predated their competitor Nabisco’s Oreo spin-off.
The unanswered question is whether a specialty retail chain like Kay Bee can survive under current market conditions. Opinions vary on whether ToysRUs was a fatality whose time had come due to a market being altered by Amazon and other online retailers, or whether the company could have survived if Bain Capital and other investors didn’t. hadn’t demanded that TRU repay the loan used to buy them.
At a minimum, it seems obvious, in our view, that the company would have survived longer. If this temporarily eases the pains of the toy industry following a 20% contraction in the toy market, we’re all OK to see Strategic Marks give it a try. Transformers cost too much like that.