This should cause a day of national mourning: Toys R Us Acquires FAO Schwarz, Flagship Fifth Avenue Store

(I have been in Texas on business.)

From Bloomberg.com:

Toys “R” Us Inc., the largest U.S. toy-store chain, acquired FAO Schwarz to take over the retailer’s flagship Fifth Avenue store in New York and increase its market share.

Toys “R” Us plans to continue operating FAO Schwarz’s two retail stores in New York and Las Vegas under the same name, along with the company’s Web site and catalog businesses . . . .

The deal combines two retailers that have faced increased competition from the Internet and discount chains during the recession.