Iconic toy store FAO Schwarz in the General Motors Building on Fifth Avenue in Midtown Manhattan, where rents are among the highest in the world, will close in July because the rent is too high, according to Toys "R" Us, Inc., which owns the store.
Toys "R" Us said it’s still looking for another location for the toy store, which first opened in 1862.
There’s some speculation that the toy retailer could move closer to Times Square. In any case, it will be closed for at least a year while the search for new space is found.
Moving around Manhattan is nothing new for FAO Schwarz, which has changed locations several times since its founding in the 19th century. While the Apple Store in the General Motors Building is thriving in the Fifth Avenue location, the toy company hasn’t been able to keep up with the rent increases.
Company officials say the brand will be fine despite having no location for a year, and FAO Schwarz items will be available in Toys "R" Us stores. But is Toys "R" Us taking full advantage of the toy store's iconic destination reputation?