FAO Sues Over CEO’s Jump to Toys R Us

Toy retailer FAO Schwarz is suing its former chief executive and Toys R Us Inc., claiming the executive broke a contract by taking the same post at the world’s largest specialty toy retailer, court papers said. John Eyler Jr. joined Toys R Us last month to help stem the store’s loss of market share to toy discounters. FAO Schwarz, which is best known for its flagship toy stores in New York and Las Vegas, claimed Eyler broke an agreement in his contract. Also, FAO Schwarz, a unit of Dutch retailing conglomerate Vendex International, had granted Eyler $2.5 million nine days before he resigned from the company. FAO’s request for a preliminary injunction seeks to end Eyler’s employment with Toys R Us, court papers said. A Toys R Us spokeswoman said the case has “no merit whatsoever.”

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