Speculation continues to brew about Toys "R" Us (NYSE:TOY). Today, inklings that the retailer's rumored plan to sell off its toy business is for real were all over the news. Maybe Toys "R" Us really isn't playing around.

The Wall Street Journal reports that Toys "R" Us is actively seeking bidders for its toy business, with buyout firms Apollo Management and Blackstone Group named in the article.

The rumors first began back in August, when the toy purveyor said it would consider the option of selling its toy business in order to focus on its growing Babies "R" Us chain. That, of course, fueled speculation that Toys "R" Us might be destined to follow in the footsteps of Kmart (NASDAQ:KMRT), with some degree of emphasis on real estate as opposed to retail.

It became apparent that things aren't particularly good in the toy arena, what with recent earnings reports that showed there was no holiday for Hasbro (NYSE:HAS) and that Mattel (NYSE:MAT) was still having Barbie-related blues. Toys "R" Us itself is also having an ongoing legal scuffle with its own online partner, Amazon.com (NASDAQ:AMZN).

However, more positive word came to the surface recently, when USA Today reported that Wal-Mart (NYSE:WMT), the company credited with having brought trouble to the toy industry to begin with, will ease up on its aggressive price-cutting policies this coming holiday season. That seemed a good sign for Toys "R" Us, especially given the fact that rival FAO Schwarz is now out of business and KB Toys is hindered by bankruptcy.

The WSJ article says the company is focused on "making this a very profitable holiday season for Toys "R" Us," even while it's searching for suitors. Shareholders undoubtedly hope so. If the company is going to go this route, there's a good possibility there's no time like the present to put on the best impression.

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Alyce Lomax does not own shares of any of the companies mentioned.