Toys ‘R’ Us, Geoffrey debtor look to recover $1.24 million in fees

By Caroline Salls

Pittsburgh, Jan. 2 – Toys “R” Us, Inc. and its Geoffrey, LLC debtor filed a lawsuit Monday in an attempt to recover $1.24 million in license fees allegedly owed by AMIC Trading (Pty) Ltd., according to a complaint filed with the U.S. Bankruptcy Court for the Eastern District of Virginia.

The Toys “R” Us debtors said AMIC claimed in the lawsuit that AMIC owes at least the specified amount in license fees and interest as of Dec. 15.

“Despite repeated requests over the past year, AMIC has refused and continues to refuse to turn over the license fees plus interest that are due and owing to the plaintiffs,” the complaint said.

“AMIC’s repeated refusal to pay clearly due and owing contractual fees has deprived the plaintiffs and their creditors of value that is unquestionably owed.”

Toys “R” Us and Geoffrey said their predecessors and AMIC entered into an agreement in 2006 under which the defendant was granted a license to use some trademarks owned by Geoffrey to operate Toys “R” Us stores in South Africa.

In exchange for the right to use the trademarks, as of Feb. 12, 2015, the plaintiffs said AMIC is required to make royalty payments “equal to 2.25% of licensee’s gross revenues for each three-month period ending at the end of each fiscal quarter,” the complaint said.

Toys “R” Us is a Wayne, N.J., toy retailer. The company filed for bankruptcy on Sept. 19, 2017 under Chapter 11 case number 17-34665.

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