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The Wall Street Journal reports this morning that Toys R Us Inc. has put its flagship toy store chain up for sale, hiring an investment advisor to “aggressively court” possible suitors.

Several months ago, the company said it was toying with the idea of selling the chain of toy stores because competition from Wal-Mart was too great, though it later said the media had blown the story out of proportion.

The toy store chain is estimated by analysts to be worth between $2 billion and $3 billion. A number of private equity firms are said to be interested in making bids for the company.

The Journal notes that all this activity is taking place surreptitiously, and that there are those who deny the company is making any such plans. However, several companies reportedly have received private financial information about the chain.
KC's View:
This is a done deal…it is just a matter of what company gets Toys R Us at this point.

What is amazing is that management, having been unable to fend off Wal-Mart in the toy business, believes that it can successfully compete with the Bentonville Behemoth in its Babies R Us categories…

Which strikes us as delusional.