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 will also cease to operate inside Macy’s stores starting in November just in time for the holiday season, the Sun-Times’ Sandra Guy reported.
A Macy’s spokeswoman said they were “disappointed” over the loss of FAO Schwarz. They had planned to expand it into other Macy’s stores, according to Bloomberg.
Macy’s hasn’t decided what will replace FAO.
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.