Wayne, N.J. — Toys R Us has announced that Gerald Storch will step down as CEO of the company but remain chairman of the board.
Wayne, N.J. — Toys R Us has announced that Gerald Storch will step down as CEO of the company. He will remain in the position until a replacement is found and remain with the company as chairman of the board afterward.
Stoltz resignation comes shortly after the company posted lower-than-expected holiday numbers. Total domestic sales decreased 1.9 percent for the month of December, and quarter-to-date sales for the fourth quarter of 2012 decreased 6.4 percent. 2012 was a bad year overall for the U.S. toy industry, which saw a 3.5 percent decrease in sales, according to research firm NPD Group.
Toys R Us brought on Storch in 2006 following its acquisition by Bain Capital Partners, Kohlberg Kravis Roberts & Co. and Vornado Realty Trust. The investors subsequently privatized the company, which has been publicly traded since 1978. News reports have claimed that Toys R Us planned to take the public again. An initial public offering was filed in May 2010, but no other steps have been taken, and a Reuters report suggests that the company will not do so until sales numbers recover.
SOURCES: Toys R Us, Reuters