A group of hedge funds in line to take control of Toys “R” Us—the same group that pulled the plug on the retailer’s reorganization this year—intends to revive the business behind the Toys “R” Us and Babies “R” Us brand names.

The retailer said in court papers filed Monday that while it received qualified bids for assets—which include the brand names of Toys “R” Us, Babies “R” Us, registry lists, website domains, Geoffrey the Giraffe and other assets—it has opted to forgo a much-anticipated bankruptcy auction for its brand...