Geoffrey the Giraffe became a knight in shining armor for toy retailer FAO Schwarz, as Toys “R” Us Inc. said it acquired the troubled high-end retailer, which has struggled for years through bankruptcies amid tough competition from discount stores. Analysts said FAO Schwarz was in danger of closing if a buyer did not materialize. Toys “R” Us — the largest U.S. toy retailer — meanwhile, will have an opportunity to work with smaller toy vendors and cut costs. Chief Executive Jerry Storch said the company is considering options for stores, but expects to retain employees. A deal to open small locations in 685 Macy’s will end in November.
Alex has written for Vanity Fair, Barrons, Bloomberg and Condé Nast Traveler.