FAO Schwartz gone in Houston?

Macy's Inc. will lose its FAO Schwarz outlets after Toys "R" Us acquires the toy retailer.
Toys “R” Us said it agreed to acquired the upscale merchant in a deal that combines two of the nation’s most high-profile toy chains, but will end Schwarz’s presence at 260 Macy’s locations.
Last May, New York retailer FAO Schwarz and Macy's signed an agreement calling for Macy's to roll out FAO Schwarz toy stores in about 675 locations over the next two years, including 16 in the Houston area.
“Under the terms of the sale, the FAO Schwarz agreement to sell toys in select Macy’s stores nationwide will end in November of this year,” Toys "R" Us spokeswoman Jennifer Albano said in an e-mail.
Macy's spokesman Jim Sluzewski said the retailer was just notified by Wayne, N.J.-based Toys "R" Us about the change on May 28.
“Our understanding is that the FAO Schwarz product will phase out in our stores and be gone by the end of November," he said.
Asked if Macy's will replace the boutiques with another branded toy chain, or its own, he said Macy's is "reviewing those opportunities."
The deal combined one of the most privileged toy chains merchants with one of the most accessible. Toys “R” Us operates stores in 33 countries worldwide. FAO Schwarz, meanwhile, is the oldest toy retailer in the country, founded in 1862.
Financial terms of the deal between Wayne, N.J.-based Toys "R" Us and FAO Schwarz have not been disclosed, but the deal includes the two FAO stores in New York City and at Caesars Palace in Las Vegas, plus the e-commerce and catalog operations.
In a press release, Toys "R" Us CEO Jerry Storch said he takes the responsibility of building on FAO Schwarz’s storied tradition very seriously. ”We will work tirelessly to preserve the distinctiveness and integrity of the FAO Schwarz stores and brand as we grow the business and, indeed, take the brand to even greater heights.”
All merchandising, management, distribution and marketing operations will immediately begin to transition to Toys “R” Us Inc., according to the release.

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