Inside the wild and tumultuous history of Toys R Us — a once beloved children's brand in the middle of a comeback

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.

Source: History

The company started as a baby goods and furniture store called Children's Bargain Town in Washington, D.C. In the subsequent years, Lazarus began expanding into toys and the company officially adopted the name Toys R Us in 1957.

Source: History

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.

Source: History

The same was the case for emerging technologies like the 16-bit Nintendo game console at the end of the century.

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

In 1966, Lazarus sold the company to Interstate Sales to help finance a larger national expansion. He transitioned from chief executive to head the Toys R Us division, which was already thriving at profits of $12 million.

Source: Encyclopedia.com 

In 1969, Toys R Us developed its beloved Geoffrey the Giraffe character, that became synonymous with the brand and its advertising campaigns over the decades.

Source: History

In 1974, parent company Interstate Sales filed for bankruptcy, and Lazarus handled the restructuring process.

Source: USA Today

Lazarus sold off struggling pieces of the business and got the company back on track so that in 1978, it was able to file its initial public offering.

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

Lazarus eventually stepped down as chief executive in 1994, a move that 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.

In the 1990s and early aughts, Toys R Us began expanding into major cities like New York, where it opened a 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. In fact, in 1998, Walmart had already surpassed the company as the top US toy seller.

Source: The Associated Press

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

Source: USA Today

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

Source: 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 where it lost significant traction to ecommerce giants like Amazon, Target, and Walmart.

Source: Business Insider

The company officially filed for Chapter 11 bankruptcy protection in September 2017, in hopes of restructuring its mounting debt.

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.

Source: Business Insider

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 hte 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.

Source: Business Insider

The CEO of the toy company MGA Entertainment issued a last-minute bid of $890 million to save the company, an offer that was ultimately rejected.

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 – adding mass amounts of baby-related products on shelves.

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

Source: Business Insider

In February 2019, Toys R Us appeared to rise from the dead when Tru Kids Brands purchased the rights to the company and its Geoffrey the Giraffe mascot with plans to revitalize it.

Source: Business Insider

Later that year, Tru Kids Brands announced it would open a series of holiday pop-up stores under the Toys R Us name, which would sell popular toys directly from manufacturers.

Source: Business Insider

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.com.

Source: Business Insider

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

In August 2020, it was confirmed that Toys R Us had ended its partnership with Target, and would now partner with Amazon as its fulfillment partner.

Source: Business Insider

Ultimately, while Toys R Us is "back," it appears it simply will never be what it once was.