It looks like there might be some hope for Toys "R" Us yet, as the bankruptcy auction that would've sold its brand name and intellectual property has been cancelled .

The beleaguered toy company cancelled the bankruptcy auction when it filed with the court on Monday (via The Wall Street Journal). Toys "R" Us was set to auction off its brand name and other IP-related assets in the auction, but the controlling lenders of the company decided to change course and announced that they will try and revive the chain using the Toys "R" Us and Babies R Us names.

In those filings the company explained that while it did receive qualified bids for its offerings, which included domains, the Toys "R" Us and Babies "R" Us names, and Geoffrey the Giraffe among others, it decided that reorganization was the best use of those assets, saying that the bids would not “yield a superior alternative to the plan." They also cited recovery to creditors and benefits to stakeholders as reasons to pivot, and view the IP they were about to sell as "a valuable piece of the lender's collateral."

Toys R Us submitted a reorganization plan along with its filing to cancel the auction that aims to create “a new, operating Toys "R" Us and Babies ‘R’ Us branding company that maintains existing global license agreements and can invest in and create new, domestic, retail operating businesses."

Having Toys "R" Us back in any capacity, even if it is limited at first, would be a boon for the Toy industry. The loss of Toys "R" Us was a big hit to companies like Mattel, as well as pretty much every other manufacturer in the market, and cost over 3000 jobs.

CEO Dave Brandon was quite disappointed things came to this in his official statement on the closings.

“There are many people and organizations who have remained in our corner every step along the way," Brandon said. "I want to thank our extraordinary team members who helped build Toys “R” Us into a global brand. I also want to express my appreciation for my colleagues on our board who have continued to provide support to sustain the brand and our operations throughout the restructuring process. I would also like to thank our vendors who we owe a great deal of gratitude to for their decades of support. This is a profoundly sad day for us as well as the millions of kids and families who we have served for the past 70 years.”

We'll keep you posted as new information comes in.