Inside the rise, fall, and resurrection of Toys R Us, the chain that once commanded a quarter of the toy market

SOURCE:Business Insider|BY:Bethany Biron,Erin McDowell,Alex Bitter

Toys R Us was one of the dominant toy retailers of the 1990s and early 2000s. Artur Widak/NurPhoto via Getty Images Toys R Us opened pop-up stores at some US malls this holiday season. The retailer has been the subject of multiple revival efforts since it ended operations in 2018. Here's a look at the history of Toys R Us, from its founding to zombie-brand status. Toys R Us is back — again. The latest phase of the toy store chain's comeback came this holiday season as Toys R Us stores popped up at a handful of malls around the US. The temporary stores are part of a broader revitalization opportunity by brand management company WHP and Go! Retail Group. It's the latest example of how the once-dominant chain is trying to make a comeback. Toys R Us used to operate around 700 stores in the US. Then, after years of faltering financial results, the chain filed for Chapter 11 bankruptcy before deciding to liquidate and close its operations in 2018. Since then, there have been multiple efforts to revive the brand, including opening locations within Macy's department stores and teaming up with Amazon. Here's a closer look at the history of the historic toy company, from its founding just after World War 2 to the revival attempt. Toys R Us was founded in 1948 by Charles Lazarus after he returned from World War II. Mike Derer/AP Lazarus was inspired by what was then the emerging post-war "baby boom" and sought a way to capitalize. The company started as a baby goods and furniture store called Children's Bargain Town in Washington, D.C. Mario Tama/Getty Images In the subsequent years, Lazarus began expanding into toys and the company officially adopted the name Toys R Us in 1957. Over the next two decades, Toys R Us played a significant role in putting iconic toys on the map for American youngsters, such as Mr. Potato Head. Former NBA player Allen Iverson holds up a Mr Potato Head toy. AP Photo/William Thomas Cain Lazarus was able to corner the market by buying and selling so many toys that he could negotiate more lucrative contracts than his competitors. The company was also known for bringing big names in for promotional events or philanthropic work, such as NBA Hall of Famer Magic Johnson. AP Photo/Thomas Kenzle Kids and their parents would line up for hours to meet their favorite stars — and do a little shopping while they were there. In 1966, Lazarus sold the company to Interstate Sales to help finance a larger national expansion. AP Photo/File According to Encyclopedia.com, he transitioned from chief executive to head the Toys R Us division, which was already thriving at profits of $12 million. In 1969, Toys R Us developed its beloved Geoffrey the Giraffe character. AP Photo/Seth Wenig The mascot became synonymous with the brand and its advertising campaigns over the decades. In 1974, parent company Interstate Sales filed for bankruptcy. Justin Sullivan/Getty Images Lazarus handled the restructuring process, according to USA Today. Lazarus sold off struggling pieces of the business and got the company back on track. AP Photo/Daniel Hulshizer In 1978, it was able to file its initial public offering. In 1983, the company opened a clothing store spinoff called Kids R Us. AP Photo/Marty Lederhandler The Toys R Us empire was steadily expanding. Lazarus eventually stepped down as chief executive in 1994. Turtle Mania hit Teesside today, at the opening of the new Toys R Us at Teesside Shopping Park, Sandown Way, Stockton on Tees. 6th October 1990. Pictured, Emma Michelle Todd after opening the store. Getty Images The move signified a series of woes for the brand, including high executive turnover and the looming pressure of ecommerce. Building upon the success of Kids R Us, the company expanded into baby clothing with Babies R Us in 1996. AP Photo/Julio Cortez The stores saw success with selling baby-related merchandise. In the 1990s and early aughts, Toys R Us began expanding into major cities like New York. AP Photo/Richard Drew In the Big Apple, Toys R Us opened its iconic multi-story store with a fully functioning Ferris wheel in 2001. Around this time, Toys R Us and its spinoff brands began to experience mounting competition from fellow big-box stores like Walmart and Target. Tom Pennington/Getty Images In fact, according to The Associated Press, in 1998, Walmart had already surpassed the company as the top US toy seller. The mounting competition led to the eventual closure of Kids R Us. Tim Boyle/Getty Images All 146 Kids R Us stores were closed in 2003. In 2005, a conglomerate of private equity firms — including Bain Capital, Kohlberg Kravis Roberts, and Vornado Realty Trust — purchased Toys R Us for $6.6 billion, taking the company private in the process. Getty According to USA Today, the plan was to boost Toys R Us sales and position the company for a stock offering that would allow investors to cash out. In an attempt to compete with the ecommerce boom, the company purchased Etoys.com and Toys.com in 2009. Business Insider/Jessica Tyler That same year, it bought KB Toys and the famed New York City toy store, F.A.O. Schwarz. In 2010 the company registered once again to go public. Stan Honda/AFP via Getty Images However, by 2013 it withdrew from the process due to sales slumps, according to USA Today. In 2015, Dave Brandon – formerly the CEO of Domino's Pizza — took over the helm of Toys R Us. AP Photo/Tony Ding According to USA Today, Brandon marked the fourth CEO over the course of 16 years "tasked with turning the company around." Still, the company continued to struggle, especially during the 2016 holiday season. Joe Raedle/Getty Images According to Business Insider, the chain lost significant traction to ecommerce giants like Amazon, Target, and Walmart. The company officially filed for Chapter 11 bankruptcy protection in September 2017. Richard Drew/AP Images The chain hoped to gain control of its debt and continue to operate its 1,600 stores around the world as normal, according to the Washington Post. With its hopes for a financial savior ultimately dashed, Toys R Us announced in March 2018 that it would liquidate and permanently close all of its 700-plus stores across the US. AP Photo/Julio Cortez According to Business Insider, the decision threatened the jobs of the 33,000 people employed by Toys R Us at the time. That same year, the company issued an emotional goodbye as it prepared to permanently shutter its Toys R Us and Babies R Us websites. "We encourage you to stop by your local store and take full advantage of the deep discounts and deals available," the message read. "Thank you for your business and support over the years." It was later announced that gift-card holders could use any remaining funds at Bed Bath & Beyond stores, according to Business Insider. The CEO of the toy company MGA Entertainment issued a last-minute bid of $890 million to save the company. Shannon Stapleton/Reuters However, the offer was ultimately rejected by Toys R Us. Throughout the rest of 2018, stores like Walmart began to position themselves to take over the void left behind in the market by Toys R Us. Walmart Supercenter in New Jersey Rachel Askinasi/Business Insider The chain strategized to overtake Toys R Us's legacy by adding mass amounts of baby-related products to its inventory. By the fall of 2018, abandoned Toys R Us stores had been temporarily converted into Halloween costume shops across the country. Business Insider/Jessica Tyler According to Business Insider, Halloween costume retailers Spirit Halloween and Halloween City set up shop in the abandoned stores but kept most of the remaining Toys R Us signage and wallpaper. In February 2019, Toys R Us appeared to rise from the dead when Tru Kids Brands purchased the rights to the company. Courtesy of Tru Kids Brands Tru Kids Brands also purchased the rights to the Geoffrey the Giraffe mascot with plans to revitalize it. Later that year, Tru Kids Brands announced it would open a series of holiday pop-up stores under the Toys R Us name. Toys R Us redesigned store rendering. Tru Kids The stores would sell popular toys directly from manufacturers, meaning that any sales would directly go to the toy companies rather than Toys R Us. Read more: Toys R Us is officially back from the dead, but its new stores won't actually make any money selling toys In October 2019, the company announced it was back online but with a catch — you couldn't actually buy anything directly from the Toys R Us site. ToysRUs.com Instead, users would be directed to make purchases from Target's website. In fall 2019, empty Toys R Us stores were once again used for Halloween purposes — this time to host haunted houses. Shoshy Ciment/Business Insider The haunted houses were a far cry from the joy-filled Toys R Us stores of the 1990s. In August 2020, it was confirmed that Toys R Us had ended its partnership with Target. Toys R Us Toys R Us would now partner with Amazon as its fulfillment partner, according to Business Insider. The coronavirus pandemic decimated in-store sales for many retailers, including Toys R Us. A Toys "R" Us storefront closed during the coronavirus pandemic. Andrew Chin/Getty Images CNBC reported in January 2021 that the retailer was facing hardships due to dwindling in-store sales amid the coronavirus pandemic. As a result, the chain's last two remaining stores in the US officially shuttered for good, bringing an end to a years-long ordeal to attempt to revitalize the brand. The final stores were in Texas and New Jersey, Bloomberg reported. "Consumer demand in the toy category and for Toys 'R' Us remains strong and we will continue to invest in the channels where the customer wants to experience our brand," a Tru Kids spokesperson told CNBC. Read more: The last 2 Toys 'R' Us stores in the US have closed down after the COVID-19 pandemic hit sales In 2022, Toys R Us announced it was making yet another comeback, by opening in-store shops at Macy's around the country. Macy's Toys R Us homepage Macy's The Toys R Us in-store locations opened in time for the holiday season that year. In 2025, Toys R Us opened pop-up shops in time for holiday shoppers. Alex Bitter/BI The stores, operated by Go! Retail Group, include eight flagship locations and 20 seasonal pop-ups around the US. The stores are different from the original Toy R Us locations. Alex Bitter/BI Although the pop-ups use the Toys R Us name and slogans, they also feature a different product selection compared to the Toys R Us stores of years past, Business Insider found during a recent visit to one store in Maryland. The store included a wide selection of calendars, for example. While Toys R Us technically still exists, the brand is a shadow of what it once was. Customers wait in line to enter Toys R Us in Times Square on Thanksgiving evening. Yana Paskova/ Getty Images While some shoppers were able to check out the brand's pop-up stores, the chain has far fewer locations than it did a decade ago. Read the original article on Business Insider

The entrance to a Toys R Us store with a lighted sign above and dark-colored SUVs and some shopping carts in the parking lot. — Toys R Us was one of the dominant toy retailers of the 1990s and early 2000s.
Artur Widak/NurPhoto via Getty Images

Toys R Us opened pop-up stores at some US malls this holiday season.
The retailer has been the subject of multiple revival efforts since it ended operations in 2018.
Here's a look at the history of Toys R Us, from its founding to zombie-brand status.

Toys R Us is back — again.

The latest phase of the toy store chain's comeback came this holiday season as Toys R Us stores popped up at a handful of malls around the US. The temporary stores are part of a broader revitalization opportunity by brand management company WHP and Go! Retail Group.

It's the latest example of how the once-dominant chain is trying to make a comeback.

Toys R Us used to operate around 700 stores in the US. Then, after years of faltering financial results, the chain filed for Chapter 11 bankruptcy before deciding to liquidate and close its operations in 2018.

Since then, there have been multiple efforts to revive the brand, including opening locations within Macy's department stores and teaming up with Amazon.

Here's a closer look at the history of the historic toy company, from its founding just after World War 2 to the revival attempt.

Toys R Us was founded in 1948 by Charles Lazarus after he returned from World War II.

Lazarus was inspired by what was then the emerging post-war "baby boom" and sought a way to capitalize.

The company started as a baby goods and furniture store called Children's Bargain Town in Washington, D.C.

toys r us store — Mario Tama/Getty Images

In the subsequent years, Lazarus began expanding into toys and the company officially adopted the name Toys R Us in 1957.

Over the next two decades, Toys R Us played a significant role in putting iconic toys on the map for American youngsters, such as Mr. Potato Head.

Lazarus was able to corner the market by buying and selling so many toys that he could negotiate more lucrative contracts than his competitors.

The company was also known for bringing big names in for promotional events or philanthropic work, such as NBA Hall of Famer Magic Johnson.

toys r us magic johnson — AP Photo/Thomas Kenzle

Kids and their parents would line up for hours to meet their favorite stars — and do a little shopping while they were there.

In 1966, Lazarus sold the company to Interstate Sales to help finance a larger national expansion.

According to Encyclopedia.com, he transitioned from chief executive to head the Toys R Us division, which was already thriving at profits of $12 million.

In 1969, Toys R Us developed its beloved Geoffrey the Giraffe character.

The mascot became synonymous with the brand and its advertising campaigns over the decades.

In 1974, parent company Interstate Sales filed for bankruptcy.

toys r us giraffe — Justin Sullivan/Getty Images

Lazarus handled the restructuring process, according to USA Today.

Lazarus sold off struggling pieces of the business and got the company back on track.

toys r us 1993 — AP Photo/Daniel Hulshizer

In 1978, it was able to file its initial public offering.

In 1983, the company opened a clothing store spinoff called Kids R Us.

The Toys R Us empire was steadily expanding.

Lazarus eventually stepped down as chief executive in 1994.

toys r us 1990 — Turtle Mania hit Teesside today, at the opening of the new Toys R Us at Teesside Shopping Park, Sandown Way, Stockton on Tees. 6th October 1990. Pictured, Emma Michelle Todd after opening the store.
Getty Images

The move signified a series of woes for the brand, including high executive turnover and the looming pressure of ecommerce.

Building upon the success of Kids R Us, the company expanded into baby clothing with Babies R Us in 1996.

The stores saw success with selling baby-related merchandise.

In the 1990s and early aughts, Toys R Us began expanding into major cities like New York.

Toys R Us store 1990 — AP Photo/Richard Drew

In the Big Apple, Toys R Us opened its iconic multi-story store with a fully functioning Ferris wheel in 2001.

Around this time, Toys R Us and its spinoff brands began to experience mounting competition from fellow big-box stores like Walmart and Target.

Toys R Us black friday — Tom Pennington/Getty Images

In fact, according to The Associated Press, in 1998, Walmart had already surpassed the company as the top US toy seller.

The mounting competition led to the eventual closure of Kids R Us.

All 146 Kids R Us stores were closed in 2003.

In 2005, a conglomerate of private equity firms — including Bain Capital, Kohlberg Kravis Roberts, and Vornado Realty Trust — purchased Toys R Us for $6.6 billion, taking the company private in the process.

According to USA Today, the plan was to boost Toys R Us sales and position the company for a stock offering that would allow investors to cash out.

In an attempt to compete with the ecommerce boom, the company purchased Etoys.com and Toys.com in 2009.

fao schwarz 2640 — Business Insider/Jessica Tyler

That same year, it bought KB Toys and the famed New York City toy store, F.A.O. Schwarz.

In 2010 the company registered once again to go public.

However, by 2013 it withdrew from the process due to sales slumps, according to USA Today.

In 2015, Dave Brandon – formerly the CEO of Domino's Pizza — took over the helm of Toys R Us.

According to USA Today, Brandon marked the fourth CEO over the course of 16 years "tasked with turning the company around."

Still, the company continued to struggle, especially during the 2016 holiday season.

toys r us bikes — Joe Raedle/Getty Images

According to Business Insider, the chain lost significant traction to ecommerce giants like Amazon, Target, and Walmart.

The company officially filed for Chapter 11 bankruptcy protection in September 2017.

Toys R Us shopper — Richard Drew/AP Images

The chain hoped to gain control of its debt and continue to operate its 1,600 stores around the world as normal, according to the Washington Post.

With its hopes for a financial savior ultimately dashed, Toys R Us announced in March 2018 that it would liquidate and permanently close all of its 700-plus stores across the US.

toys r us closing — AP Photo/Julio Cortez

According to Business Insider, the decision threatened the jobs of the 33,000 people employed by Toys R Us at the time.

That same year, the company issued an emotional goodbye as it prepared to permanently shutter its Toys R Us and Babies R Us websites.

"We encourage you to stop by your local store and take full advantage of the deep discounts and deals available," the message read. "Thank you for your business and support over the years."

It was later announced that gift-card holders could use any remaining funds at Bed Bath & Beyond stores, according to Business Insider.

The CEO of the toy company MGA Entertainment issued a last-minute bid of $890 million to save the company.

black friday 2004 Toys R Us — Shannon Stapleton/Reuters

However, the offer was ultimately rejected by Toys R Us.

Throughout the rest of 2018, stores like Walmart began to position themselves to take over the void left behind in the market by Toys R Us.

Walmart, New Jersey — Walmart Supercenter in New Jersey
Rachel Askinasi/Business Insider

The chain strategized to overtake Toys R Us's legacy by adding mass amounts of baby-related products to its inventory.

By the fall of 2018, abandoned Toys R Us stores had been temporarily converted into Halloween costume shops across the country.

toys r us closing 9006 — Business Insider/Jessica Tyler

According to Business Insider, Halloween costume retailers Spirit Halloween and Halloween City set up shop in the abandoned stores but kept most of the remaining Toys R Us signage and wallpaper.

In February 2019, Toys R Us appeared to rise from the dead when Tru Kids Brands purchased the rights to the company.

Toys R Us store front — Courtesy of Tru Kids Brands

Tru Kids Brands also purchased the rights to the Geoffrey the Giraffe mascot with plans to revitalize it.

Later that year, Tru Kids Brands announced it would open a series of holiday pop-up stores under the Toys R Us name.

The stores would sell popular toys directly from manufacturers, meaning that any sales would directly go to the toy companies rather than Toys R Us.

In October 2019, the company announced it was back online but with a catch — you couldn't actually buy anything directly from the Toys R Us site.

Instead, users would be directed to make purchases from Target's website.

In fall 2019, empty Toys R Us stores were once again used for Halloween purposes — this time to host haunted houses.

Toys R Us Haunted house — Shoshy Ciment/Business Insider

The haunted houses were a far cry from the joy-filled Toys R Us stores of the 1990s.

In August 2020, it was confirmed that Toys R Us had ended its partnership with Target.

Toys R Us would now partner with Amazon as its fulfillment partner, according to Business Insider.

The coronavirus pandemic decimated in-store sales for many retailers, including Toys R Us.

CNBC reported in January 2021 that the retailer was facing hardships due to dwindling in-store sales amid the coronavirus pandemic. As a result, the chain's last two remaining stores in the US officially shuttered for good, bringing an end to a years-long ordeal to attempt to revitalize the brand.

The final stores were in Texas and New Jersey, Bloomberg reported.

"Consumer demand in the toy category and for Toys 'R' Us remains strong and we will continue to invest in the channels where the customer wants to experience our brand," a Tru Kids spokesperson told CNBC.

In 2022, Toys R Us announced it was making yet another comeback, by opening in-store shops at Macy's around the country.

The Toys R Us in-store locations opened in time for the holiday season that year.

In 2025, Toys R Us opened pop-up shops in time for holiday shoppers.

The entrance to a Toys R Us store in Maryland. — Alex Bitter/BI

The stores, operated by Go! Retail Group, include eight flagship locations and 20 seasonal pop-ups around the US.

The stores are different from the original Toy R Us locations.

A banner above some calendars at Toys R Us reads: "I'm a Toys R Us kid!" — Alex Bitter/BI

Although the pop-ups use the Toys R Us name and slogans, they also feature a different product selection compared to the Toys R Us stores of years past, Business Insider found during a recent visit to one store in Maryland. The store included a wide selection of calendars, for example.

While Toys R Us technically still exists, the brand is a shadow of what it once was.

Black friday women — Customers wait in line to enter Toys R Us in Times Square on Thanksgiving evening.
Yana Paskova/ Getty Images

While some shoppers were able to check out the brand's pop-up stores, the chain has far fewer locations than it did a decade ago.

Read the original article on Business Insider

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Inside the rise, fall, and resurrection of Toys R Us, the chain that once commanded a quarter of the toy market