FAO Schwarz said to be leaving New York City

Global Business

Manhattan commercial real estate has been increasing in value dramatically lately, and while that has been great for landlords, it has meant the departure of a lot of retailers in the city. The latest casualty is one of the world’s most famous toy stores, FAO Schwarz, which has a long history in the big apple.

FAO Schwarz said to be leaving New York City

FAO Schwarz said to be leaving New York City

Manhattan commercial real estate has been increasing in value dramatically lately, and while that has been great for landlords, it has meant the departure of a lot of retailers in the city. The latest casualty is one of the world's most famous toy stores, FAO Schwarz, which has a long history in the big apple.

CCTV America’s Karina Huber filed this report from New York.
Follow Karina Huber on Twitter @kkat31

More details:

  • FAO Schwarz was once a status symbol, but its fate began to falter once Amazon and other competitors began offering similar products for a fraction of the price. It filed for bankruptcy in 2003.
  • Its latest problems have to do with Manhattan real estate. Between 2006 and 2014 properties in the area have roughly doubled in price from $1,500 per square foot to over $3,000.
  • The global retail giant that owns FAO Schwarz is also closing its flagship Times Square store. The FAO Schwarz brand won’t go away entirely. It will exist online and in some Toys “R” Us outlets.