Toys R Us CEO, COO to Resign After Sale Closes

Toys R Us Inc. on Tuesday said Chairman and Chief Executive John Eyler and Chief Operating Officer Christopher Kay had resigned from the retailer, which is being bought by an investment group.

The company said the resignations would go into effect as soon as the company went private.

Toys R Us in March accepted a $6.6-billion takeover offer by private equity firms Kohlberg Kravis Roberts & Co. and Bain Capital and real estate group Vornado Realty Trust. Toys R Us shareholders are scheduled to vote on the agreement Thursday, and the deal is expected to close in July.

Richard Markee, Toys R Us vice chairman and president of Babies R Us, will act as interim CEO while the company searches for Eyler’s successor, the retailer said. Markee has also served as president of the company’s U.S. toy stores.

Eyler joined the company as president and CEO in January 2000 after running upscale toy retailer FAO Schwarz for several years.

One of Eyler’s challenges was to balance Toys R Us’ low-price crusade with a campaign to make consumers see toys -- and toy shopping -- as “special” instead of a commodity.

During his tenure, Eyler was instrumental in developing Toys R Us’ experimental Geoffrey store format, which combines toys, baby products and clothing under one roof. He also oversaw the company’s move into grocery stores and its strong growth internationally as well as at the Babies R Us and online units.

Shares of Toys R Us fell 6 cents, or 0.2%, to $26.36.