Toys R Us History: Rise, Fall, and Revival

Charles Lazarus founded the company in 1948 after returning from World War II. Inspired by the post-war baby boom, Lazarus initially opened a baby goods and furniture store called Children's Bargain Town in Washington, D.C.

In 1957, the company officially adopted the name Toys R Us as Lazarus began expanding into toys. By buying and selling large volumes of toys, Lazarus was able to negotiate lucrative contracts that competitors could not match. The retailer played a significant role in popularizing iconic toys such as Mr. Potato Head.

The company also became known for promotional events featuring celebrities like NBA Hall of Famer Magic Johnson. In 1966, Lazarus sold the company to Interstate Sales to finance national expansion, remaining to head the Toys R Us division which was reporting profits of $12 million at the time.

In 1969, the beloved Geoffrey the Giraffe character was developed, becoming synonymous with the brand's advertising campaigns. By 1978, the company had filed for its initial public offering.

The 1980s and 1990s marked a period of aggressive growth for the retailer. In 1983, the company opened Kids R Us, a clothing store spinoff. Lazarus stepped down as chief executive in 1994, a move that signified looming challenges for the brand, including high executive turnover and the rise of e-commerce.

In 1996, the company expanded into baby clothing with Babies R Us. The retailer also expanded into major metropolitan areas, opening an iconic multi-story store in New York City featuring a fully functioning Ferris wheel in 2001.

However, the landscape was shifting. In 1998, Walmart surpassed Toys R Us as the top toy seller in the US. Mounting competition from big-box stores like Walmart and Target led to the closure of all 146 Kids R Us stores 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. The goal was to boost sales and position the company for a stock offering.

To compete with the e-commerce boom, the company purchased Etoys.com and Toys.com in 2009, along with KB Toys and F.A.O. Schwarz. The company registered to go public again in 2010 but withdrew the process in 2013 due to sales slumps.

In 2015, Dave Brandon took over as CEO, marking the fourth leader in 16 years tasked with turning the company around. The chain continued to struggle, losing significant traction to e-commerce giants like Amazon. The company officially filed for Chapter 11 bankruptcy protection in September 2017.

Despite hopes to restructure and continue operating its 1,600 global stores, the effort failed. In March 2018, Toys R Us announced it would liquidate and permanently close all of its 700-plus US stores, affecting the jobs of 33,000 employees.

Following the liquidation, the brand entered a cycle of revival attempts. In February 2019, Tru Kids Brands purchased the rights to the company and the Geoffrey the Giraffe mascot. Later that year, Tru Kids opened holiday pop-up stores and launched a website that directed users to make purchases on Target's website.

The partnership with Target ended in August 2020, with Toys R Us switching its fulfillment partner to Amazon. However, the coronavirus pandemic decimated in-store sales, leading to the closure of the last two US stores in Texas and New Jersey.

In 2022, the brand announced another comeback by opening in-store shops at Macy's locations. The most recent phase occurred in 2025, when pop-up shops opened for the holiday season. These stores, operated by Go! Retail Group, include eight flagship locations and 20 seasonal pop-ups. While they use the Toys R Us name, they feature a different product selection compared to the original stores, including items like calendars.