Toy Industry Giants Combine
 |
Toy industry giant Toys “R” Us announced the acquisition of the iconic FAO Schwarz early Thursday, May 28. Terms of the acquisition were not disclosed.
In a press release, Jerry Storch, Chairman and CEO of Toys “R” Us says of the acquisition, “We have enormous respect for the FAO Schwarz brand and for the special place it holds in the hearts of children everywhere.”
Toys “R” Us will takeover operation of the store in New York City, the Las Vegas store, as well as all e-commerce and the FAO Schwarz catalogue. All FAO Schwarz entities will retain the brand name.
FAO Schwarz, known for its high end and unique merchandise has struggled in recent years as discount retailers have taken over the toy industry. The store, established in 1862, was purchased by D.E. Shaw group in 2004 after filing for bankruptcy protection twice in 2003. The store recently said it was in danger of closing its doors for good when Toys “R” Us materialized as a willing buyer.
 |
Of future plans for the store, Storch says, “We will work tirelessly to preserve the distinctiveness and integrity of the FAO Schwarz stores and brand”. Toys “R” Us has said they plan to offer current employees opportunities at the two current stores.
A deal brokered between FAO Schwarz and Macy’s earlier this year that would have opened hundreds of additional stores within Macy’s was not issued as part of the deal and will be abandoned in November.
All FAO Schwarz operations including distribution, merchandising, management, and marketing will transition immediately to Toys “R” Us, according to the release.
Sources for this article found at:
http://www4.toysrus.com/Investor/pr/052709.html
More To See
