Toys R Us acquires FAO Schwarz
Toys R Us Inc. announced today that it has acquired classic toy retailer FAO Schwarz for an undisclosed amount.
Under terms of the deal, Toys R Us said it would take over FAO Schwarz’s remaining retail stores, in New York City and Las Vegas, and its e-commerce and catalog operations. Each of those businesses will continue to operate under the FAO Schwarz name.
Founded in 1862, FAO Schwarz of New York has lost some of its luster in recent years, shuttering locations around the country. But Jerry Storch, chief executive of Toys R Us, said the brand still holds a “special place...in the hearts of children everywhere.”
“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,” he said in a statement.
Merchandising, management, distribution and marketing operations will immediately begin to transition to Toys R Us, which maintains its headquarters in New Jersey and operates more than 1,500 stores in 33 countries.
A Toys R Us spokeswoman said FAO Schwarz products sold in Macy’s stores nationwide would be phased out by the end of the year.
-- Andrea Chang
