Toys “R” Us Reboot Faces New Hurdle

In the midst of a push to reinvent itself and reemerge on the other side of a bankruptcy that led to the closure of all its stores, Toys “R” Us (Wayne, N.J.) is facing resistance from a former major supplier of the brand’s toys.

MGA Entertainment (Los Angeles) CEO Isaac Larian says he will not sell his toys to the brand, based on the way it managed its business in the past, reports USA Today. Larian was a vocal supporter two years ago, launching a campaign to keep the company around amid financial struggles. He even offered to purchase the company when its options had run out, but its lenders and financial firms declined the $891 million offer.

“MGA for one will never give them credit or do business [with Toys “R” Us], because they’re not reliable people,” Larian said. “For me it’s a matter of principle.” MGA Entertainment is the company responsible for popular toys LOL Surprise, Bratz dolls, and the Little Tikes brand.

Toys “R” Us is in the process of creating a wholesale business, called Geoffrey’s Toy Box, as its first step back into the market.