Toys ‘R’ Us sells FAO Schwarz

Expect more FAO Schwarz-branded toys, in-store “experiences” and even possible freestanding stores in the very near future.



In an unexpected announcement, ThreeSixty Group said it has acquired FAO Schwarz from Toys “R” Us. The terms of the transaction were not disclosed. Toys “R” Us purchased FAO Schwarz in 2009.



ThreeSixty designs, manufactures and distributes toys and other consumer products under a portfolio of owned and licensed brands — including, Sharper Image, Black Series, Discovery Kids, Smithsonian, and Animal Planet — for over 70,000 retail stores across the country.



Founded in 1862, FAO Schwarz was the oldest toy store in the United States and one of the oldest retail establishments of any kind when its sole remaining store, its flagship on Manhattan’s Fifth Avenue, closed in 2015. The name, however, has lived on, with FAO Schwarz-branded products sold on Toys “R” Us website and in its stores.



A new FAO Schwarz toy collection, designed by ThreeSixty, will draw upon the one-of-a-kind products and legendary in-store experience that marked the Manhattan flagship. The toy collection and a unique “in-store experience” will be available at select retailers in the fall of 2017, ThreeSixty said. Until then, FAO Schwarz merchandise will continue to be sold by Toys “R” Us.



“We are humbled to have an opportunity to build upon the iconic heritage of FAO Schwarz,” said Kirk McLean, co-founder of ThreeSixty Group. “For over one hundred and fifty years, FAO has provided a magical experience for children and we hope to keep this tradition alive by crafting fine toys and transformative retail experiences for generations to come. We are investing heavily in this brand and believe there is a tremendous opportunity to build upon the heritage experience and nostalgia of FAO Schwarz.”