Toys R Us sells FAO Schwarz brand to ThreeSixty Group

NEW YORK (AP) — Toys R Us has sold its FAO Schwarz brand to ThreeSixty Group, a company that designs and sells toys, home goods and other products.

FAO Schwarz, founded in 1862, was known for its New York toy store that was a magnet for tourists who would play a tune on the store's floor piano or gawk at its large stuffed animals. But Toys R Us, which bought FAO Schwarz in 2009, shuttered the store last year to save money.

ThreeSixty said Tuesday that it plans to design a new collection of toys under the FAO Schwarz brand that it expects to be ready next fall. The company also plans to create in-store experiences for other retailers that would try to recreate a part of FAO Schwarz's famous store. ThreeSixty, based in Irvine, California, already sells products under several brands, including The Sharper Image, Animal Planet and Discovery Kids.

The company did not disclose how much it paid for FAO Schwarz.

Toys R Us, based in Wayne, New Jersey, said it will sell its remaining FAO Schwarz plush animals, blocks and other toys until next spring.