Toys ‘R’ Us, Inc. — owned by Mattel, Inc. (NASDAQ:MAT) — is selling off its FAO Schwarz brand.
The move means that the company will no longer own its iconic flagship store in New York City, which received plenty of attention during the giant keyboard scene in Big, a film starring Tom Hanks as a kid who makes a wish to become an adult.
Toy distributor and designer ThreeSixty Group announced plans to acquire the brand, which is 154 years old. Toys ‘R’ Us has owned FAO Schwarz since 2009.
ThreeSixty Group was pleased to announce the deal, which has both history and a tinge of nostalgia attached to it. The company will re-design the new FAO Schwarz store along with a toy line consisting of “one-of-a-kind products,” as well as epic in-store experiences.
Select retailers will sell the line at stores beginning in the fall of 2017. The brand’s merchandise will be available online and at Toys ‘R’ Us stores.
This deal comes as the toy giant is looking to cut costs by closing and selling off stores, as well as revamping its current stores to appease children and parents. Lower prices from competitors have forced Toys ‘R’ Us’ hands in matching prices.
A company spokeswoman said it is with sadness that the company makes such a move, but it will help the brand grow in the long run.
MAT shares slid 1.8% Tuesday.
