Toys R Us had acquired FAO Schwarz seven years earlier in 2009, but has shut shop in a bid to save money. In 2010, the company shuttered the FAO Schwarz store in Las Vegas and in 2015, the iconic store in New York.
Prior to being snapped up by Toys R Us, Fao Schwarz was hit by low sales leading to two bankruptcy filings in 2003.
The terms of the deal have not been disclosed yet.
FAO Schwarz was founded in 1862, and was known for its New York experience toy store. The store was so famous that it became a popular tourist spot, with visitors to the city going there just to walk on the floor piano.
“We are investing heavily in this brand and believe there is a tremendous opportunity to build upon the heritage experience and nostalgia of FAO Schwarz,” Co-founder of ThreeSixty Group, Kirk McLean, said in a news release announcing the deal.
The new FAO Schwarz toy collection will be designed by ThreeSixty. It will “draw upon the one-of-a-kind products and legendary in-store experience at the FAO Schwarz flagship store in New York City,” the company said in a statement.