Toys R Us buys FAO Schwarz
After years struggling to compete with toy giants, FAO Schwarz is joining one.
Toys R Us Inc. said Wednesday that it had acquired iconic retailer FAO Schwarz. Terms were not disclosed.
Toys R Us plans to take over FAO Schwarz’s remaining retail stores, in New York City and Las Vegas, and its e-commerce and catalog operations. The 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 Toys R Us Chief Executive Jerry Storch said the brand still held 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,” he said in a statement.
Merchandising, management, distribution and marketing operations will immediately begin to transition to Toys R Us of Wayne, N.J., which has more than 1,500 stores in 33 countries.
A Toys R Us spokeswoman said FAO Schwarz products currently sold in Macy’s stores nationwide would be phased out by the end of the year.
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