Billionaire gives up bid to save Toys 'R' Us; says lenders 'out of touch'

May 22 (UPI) -- Billionaire toy mogul Isaac Larian has abandoned his bid to try and save U.S. mega-retailer Toys 'R' Us.

Larian, whose company MGA Entertainment makes Bratz and Little Tikes toys, said Monday he was unable to reach a deal with Toys 'R' Us lenders. The company filed for bankruptcy last summer and announced in March it would close all its U.S. stores.

"I am most disheartened that the legacy of the retailer will be lost for future generations," Larian told CNNMoney.

Last month, a group of investors led by Larian offered to buy Toys 'R' Us stores in the United States and Canada for nearly $900 million.

Larian later dropped his bid for the Canadian locations but had hoped to make a U.S. offer work.

"The so-called advisers and lawyers milked that company to death in a matter of seven months, which is remarkable," Larian told the Los Angeles Times. "And the current lenders are just not in touch with reality on valuation."

The Toys 'R' Us closures in the United States affect about 800 locations and 33,000 jobs. The company said in March foreign stores would also be liquidated.

The company's bankruptcy stems from $8 billion in debt it accrued from a leveraged buyout in 2005. In recent years, Toys 'R' Us has struggled to compete against big-box and online toy retailers like Amazon and Walmart.