FAO Schwarz Rides Geoffrey the Giraffe to Solvency
May 29, 2009
Toys R Us has acquired high-end retailer FAO Schwarz, which has been plagued by bankruptcies and discount stores for several years. FAO Schwarz has had a long history of financial difficulty, having filed for bankruptcy twice in 2003. Toys R Us, acquired by KKR, Bain Capital and Vornado Realty Trust in 2006 for $6.6 billion, is said to have picked up FAO Schwarz for very little, underscoring the financial struggles of the retailer. The deal gives Toys R Us the opportunity to work with smaller toy vendors and further cut costs.