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Toys R Us Buys FAO Schwarz

AP
posted: 257 DAYS 21 HOURS AGO
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Toys R Us store
AP
WAYNE, N.J. (May 28) - Toys R Us. Inc. announced early Thursday that it had bought troubled high-end retailer FAO Schwarz, which has struggled for years through bankruptcies amid tough competition from discount stores.
"We will work tirelessly to preserve the distinctiveness and integrity of the FAO Schwarz stores and brand as we grow the business and, indeed, take the brand to even greater heights," Jerry Storch, CEO and chairman of Toys R Us, said in a news release.
Toys R Us will operate FAO Schwarz's flagship store in New York City and a second store at Caesars Palace in Las Vegas. FAO Schwarz's Web site and catalog will continue to use the company's name.
The company declined to release financial details of the agreement.
FAO Schwarz was established in 1862 and immortalized in the 1988 Tom Hanks movie "Big." It's best known for its upscale selection of toys but also began to offer its own branded $20-and-under toys during the 2008 holiday season.
It has faced financial difficulty in the past. The company filed for bankruptcy protection twice in 2003, first in January after a weak 2002 holiday season. It was purchased by D.E. Shaw group in 2004.
Toys R Us operates more than 1,500 stores worldwide, including 847 in the United States.
Copyright 2009 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without the prior written authority of The Associated Press. Active hyperlinks have been inserted by AOL.
2009-05-28 05:00:48
COMMENTS ( 5 )
Page 1 of 1 1
WCAGAIL
9:44AM May 29 2009 
I LOVE FAO Schwartz....I hope Toys R Us doesn't turn it into a trash heap like their own stores.
REPLY RATING
(0 RATINGS)
 
MRSTEVENPARKER
3:38PM May 28 2009 
Overpriced toys for underappreciating spoiled rotten screaming I want this brats.
REPLY RATING
(1 RATINGS)
 
TetonAuto
2:46PM May 28 2009 
Its a fun store to visit, but too expensive to buy anything.
REPLY RATING
(2 RATINGS)
 
Charpist5
1:15PM May 28 2009 
That sleeze company FAO stuck my little business for $9,000.00 during their first bankruptcy, then expected us to blithely keep supplying them, which we didn't. A year later, the filed AGAIN, and stuck all the idiots who kept doing business with them TWICE. I will ALWAYS hate FAO and any company associated with them.
REPLY RATING
(1 RATINGS)
 
Jimbo13134579
8:18AM May 28 2009 
I have always thought that Schwartz was one of the best toy stores in the country after seeing the movie "Big" and "Lost in New York". I have never been to the store but I am pleased that the store will continue into the future so maybe one day I can take my grandkids.
REPLY RATING
(1 RATINGS)
 
Page 1 of 1 1
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