Toys R Us acquires high-end retailer FAO Schwarz

Updated: Thu 1:26 AM, May 28, 2009

WAYNE, N.J. (AP) - Toys R Us Inc. says it has purchased FAO Schwarz, one of the nation's oldest toy retailers.

CEO and chairman Jerry Storch announced the acquisition of the iconic high-end store in a news release early Thursday.

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.

Storch declined to release financial details of the agreement.

FAO Schwarz was established in 1862 and was immortalized in the 1988 Tom Hanks movie "Big.”

The toy retailer filed for bankruptcy protection twice in 2003 amid tough competition from discounters such as Wal-Mart Stores Inc. and Target Corp. It was purchased by D.E. Shaw group in 2004.

Bloomberg Advises Grads on Immigration Reform

Comments are posted from viewers like you and do not always reflect the views of this station.

US Business News

Wal-Mart Plays Catch-Up With Amazon
Wal-Mart, in its efforts to catch up to Amazon, is creating a vast new logistics system that includes building warehouses for Web orders but also uses workers in stores to pack and mail items to customers.
Dish Network Drops Pursuit of Sprint
Dish Network said it won't submit a new offer for Sprint Nextel by its Tuesday deadline, a move that appears to clear the way for the third largest U.S. wireless carrier to be bought by SoftBank of Japan.
Boeing 787 Makes Unscheduled Landing
A Boeing 787 Dreamliner operated by United Airlines of a flight from Denver to Tokyo made an unscheduled landing in Seattle because of an apparent problem with an engine oil filter. There was no fire.
Speedy Traders in Talks on Tie-Up
Two of the largest independent U.S. high-frequency-trading firms are in early merger discussions, as a downturn in trading opportunities has spurred cutbacks and tie-up talks among rivals
Icahn Raises Dell Stake, Urges Tender Offer
Carl Icahn called for Dell to launch a tender offer for up to $16 billion of its shares, and he also bought about 72 million shares, making him the second-largest holder in the company.
United Adds to Elite-Flier Requirements
United Airlines said it would add a minimum annual spending level that passengers will have to meet to qualify for elite frequent-flier status.
Alcatel to Overhaul Finances
Alcatel-Lucent on Wednesday plans to announce steps aimed at increasing its financial flexibility and the efficiency of its loss-plagued operations, according to people familiar with the matter.
Maker of 'Candy Crush Saga' Plans IPO
The publisher of the hit mobile game "Candy Crush Saga" has hired banks to pursue a U.S. initial public offering, according to people familiar with the move.
Smithfield Chief Stands to Get Big Haul on Deal
Smithfield Foods's CEO could receive more than $46 million in merger-related payments after helping to orchestrate his company's sale to China's Shuanghui for $4.7 billion.
At Biogen, It's Crunch Time for CEO
Since becoming Biogen Idec's CEO three years ago, George Scangos has helped quadruple the company's market value. Now, he is under pressure to successfully guide the launch of its MS drug Tecfidera.