Maybe it's still alive. Last year Benny said it would start in July, now it's November. What happens when November comes? There is still no indication of where the money is coming from to pay for the Giant-Size line (and Toys R Us is a good location, but hardly optimal). There is also the added expense of the Toys R Us exclusive bags that REDG has to provide.
On the bright side, Toys R Us is probably also an advertiser.