WhereIsAtlas · Toy retail

Toys “R” Us

The toy cathedral that debt killed — and nostalgia resurrected

Transformed — US stores closed in 2018. The brand now runs as a WHP Global licence: Macy's shop-in-shops since 2022, and new flagships from 2025.

Charles Lazarus started selling baby furniture in Washington, D.C. in April 1948, in a store called Children's Bargain Town, and discovered that toys were the real business. In June 1957 he opened the first store trading as Toys “R” Us — a supermarket-style floor of floor-to-ceiling shelves sold at discount — and that layout, not any single product, is what made the company for the next four decades.

The rise was structural. After the bankruptcy of its parent, Interstate Department Stores, the chain became an independent public company on the New York Stock Exchange in 1978, then expanded internationally from 1984 and added Babies “R” Us in 1996. By the mid-1990s it was the default destination for American childhood, with roughly 1,500 stores worldwide and Geoffrey the Giraffe as its face.

The fatal blow was not Amazon alone but leverage. A 2000 exclusive deal made Toys “R” Us the sole toy seller on Amazon for a decade, which boosted sales while ceding its own e-commerce build-out, and the relationship ended in litigation. In 2005 KKR, Bain Capital and Vornado bought the company in a $6.6 billion leveraged buyout whose interest consumed the cash that store upgrades and online capacity needed. Walmart and Target used toys as loss-leaders to pull traffic for groceries, a price fight the chain could not win. It filed for Chapter 11 in September 2017 and liquidated about 735 US stores in 2018; Charles Lazarus died that year, aged 94, days after liquidation was announced.

The brand outlived the company. Its assets were restructured under Tru Kids between 2019 and 2021, and in March 2021 the brand-management firm WHP Global took a controlling interest. WHP licenses the name rather than running stores: the return to malls came in 2022 as shop-in-shop counters inside Macy's, Babies “R” Us returned through Kohl's, and in September 2026 the brand announced 120 new standalone stores opening that holiday season — its largest expansion since the liquidation. What exists now is a licence, not a chain, and the distinction is not academic: the Canadian arm, separately owned, filed for creditor protection again in February 2026 and sold its business in parts. The 2018 liquidation is still the end of the company that existed.

Timeline

  1. Apr 1948 — Children's Bargain Town: Lazarus opens a baby-furniture store in Washington, D.C. and discovers toys are the draw. (Washington, D.C.)
  2. Jun 1957 — Toys “R” Us opens: The first store under the name opens in Rockville, Maryland — supermarket layout, discount prices.
  3. 1969 — Geoffrey the Giraffe: The giraffe debuts and becomes the face of the brand for the rest of its history.
  4. 1978 — Independent and listed: After parent Interstate Department Stores fails, the chain becomes a public company on the NYSE.
  5. 1984 — International expansion: Stores open outside the US for the first time, beginning in Canada and Singapore.
  6. 1996 — Babies “R” Us, and the peak: A second storefront for infant gear, while the chain approaches ~1,500 locations worldwide.
  7. 2000 — The Amazon deal: A decade-long exclusive makes it Amazon's sole toy supplier — sales up, its own e-commerce strategy gone.
  8. 2005 — The $6.6B buyout: KKR, Bain and Vornado take it private and load it with debt whose interest eats the modernisation budget.
  9. Sep 2017 — Chapter 11: Filings for bankruptcy protection, intending reorganisation. Liquidation follows instead.
  10. 2018 — All US stores close: Roughly 735 American stores shut and Geoffrey is 'retired'. Lazarus dies aged 94, days after liquidation is announced.
  11. Mar 2021 — WHP Global takes control: The brand-management firm acquires a controlling interest in Tru Kids, owner of the assets since 2019.
  12. 2022 — Back inside Macy's: Shop-in-shop counters return the name to malls, without the leases that killed it.
  13. 2025 — Full stores again: Through a partnership with Go! Retail Group, seven flagships and a dozen-plus seasonal shops are announced. A licence now, not a chain.
  14. 2024 — Babies “R” Us at Kohl's: WHP relaunches the baby banner as shop-in-shops inside Kohl's rather than as standalone stores.
  15. Feb 2026 — Canada fails again: The separately owned Canadian arm seeks creditor protection under the CCAA, and by June has court approval to sell its business in parts.
  16. Sep 2026 — 120 more stores: The brand announces 120 new standalone stores for the holiday season — its largest expansion since liquidation.

Quick facts

Founded
April 1948, Washington, D.C.
Founder
Charles Lazarus
First Toys “R” Us
June 1957, Rockville, Maryland
2005 LBO
$6.6B (KKR, Bain, Vornado)
Bankruptcy
Sep 2017
US stores closed
≈ 735 in 2018
Now
WHP Global licence · Macy's 2022 · flagships 2025

Sources

  1. Wikipedia: Toys %22R%22 Us — Wikipedia (2026-01-10)
  2. Game over: bankrupt Toys R Us files for liquidation — NBC News (2026-10-17)
  3. Toys R Us returns to Macy's — The New York Times (2025-12-05)
  4. Toys 'R' Us is opening a new flagship store here on Long Island — News 12 Long Island (2026-10-17)
  5. Toys"R"Us to roll out 10 US flagships and 20 holiday shops by year's end — Retail Gazette (2026-10-17)
  6. These Toys R Us stores are making a comeback in California — Los Angeles Times (2026-10-17)
  7. Kohl's and WHP Global announce new strategic partnership for Babies R Us — WHP Global (2026-10-17)
  8. Toysrus announces major US expansion with 120 new standalone stores opening this holiday season — PR Newswire (2026-10-17)
  9. Toys R Us to open 120 new locations for 2026 holiday season — NorthJersey.com (2026-10-17)
  10. Toys R Us Canada announces commencement of proceedings under the CCAA — Newswire.ca (2026-10-17)
  11. Toys R Us Canada gets court approval to sell parts of business to three firms — CP24 (2026-10-17)

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