Toys R Us Acquires Fao Schwarz

05.28.09 | FL News Team

In a move that some might say is akin to K-mart buying Bloomingdales, FAO Schwarz Toys has been purchased by Toys "R" Us. The largest toy store chain in the U.S. says the move has been made to increase its market share and promises the FAO Schwarz retail stores in New York and Las Vegas will keep the name.

Toys "R" Us also plans to maintain the FAO Schwarz website and catalog business. In a statement released late on Wednesday Toys 'R' Us CEO Jerry Storch says "this acquisition allows us to grow our toy specialist market share."

FAO Schwarz went bankrupt in 2004 when it was no longer able to compete with other retailers. Walmart hit FAO Schwarz especially hard, taking a full 14-percent of all toy, entertainment and electronics sales in the U.S.

Toys "R" Us has about 600 stores in the U.S.