What Happened to Toys “R” Us?

1948–2018 Retail • United States

💥 Fate: After a 2017 Chapter 11 filing, the U.S. business entered liquidation in 2018 and closed hundreds of stores. The intellectual property was later acquired and relaunched by new owners with small-format stores and Macy’s shop-in-shops.

Childhood wonderland crushed by $5B debt and Amazon

Toys “R” Us became synonymous with toy shopping in the U.S. and abroad. The chain popularized the big-box toy superstore model, expanded internationally, and spun up Babies “R” Us for infant goods.

Heavy debt from a 2005 leveraged buyout and a rapid shift toward e-commerce and discounters eroded performance. The company filed for Chapter 11 in 2017 and, unable to find a buyer for the entire U.S. business, liquidated in 2018, shuttering hundreds of stores. The intellectual property was later acquired by Tru Kids (and subsequently tied to WHP Global), which experimented with small experiential stores, online sales, and Macy’s shop-in-shops.

While the original U.S. company ended in 2018, the brand persists in limited forms—an example of a famous retail name outliving the corporation that made it ubiquitous.

Timeline

1948
Charles Lazarus opens a children’s furniture shop in Washington, D.C., the precursor to Toys “R” Us.
1957
First dedicated Toys “R” Us store opens, focusing on toys year-round.
1978
IPO on the New York Stock Exchange fuels expansion; Geoffrey the Giraffe becomes a pop-culture mascot.
1996
Launch of Babies “R” Us concept focused on infant and toddler products.
2005
Taken private in a leveraged buyout by Bain Capital, KKR, and Vornado; debt load weighs on flexibility.
2017
Files for Chapter 11 bankruptcy protection in the U.S. amid declining sales and high debt service.
2018
Company announces U.S. liquidation after failing to secure a going-concern sale.
2018
Most remaining U.S. stores close; the original U.S. company effectively ends operations.
2019
Tru Kids Brands assumes ownership of the Toys “R” Us and Babies “R” Us IP; explores relaunch.
2019
Small experiential stores open under new ownership; later closures precede a revised strategy.
2021
Macy’s partnership announced: online sales collaboration and plan for in-store Toys “R” Us shops.
2022
Nationwide Macy’s shop-in-shop rollout expands brand presence ahead of the holiday season.