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Industry Toys
Founded 1997
Parent Toys "R" Us
Slogan Childhood Dreams Delivered
Website is a retail website that sells toys via the Internet. It was established by a startup company of the same name during the dotcom boom, but the company went bankrupt towards the end of the boom, after which the site went through a number of changes of ownership, and was acquired by Toys "R" Us in February 2009.


eToys was launched in 1997. In 1999, eToys held an IPO. Shares were issued at $20. At the end of the first day of trading, the stocks closed in at $76 a share.[1]

eMarketer was once quoted as saying; "Put simply, eToys is the benchmark against which all other toy sites are measured".[2] In 1999, the company was involved in a high-profile dispute with Swiss art site etoy. EToys attempted to seize the domain from etoy on the grounds that it was confusingly similar to its own domain, but it relented after widespread Internet outrage.[3]

Chapter 11 bankruptcy

Around March 7, 2001, the Wall Street Journal reported that KB Toys acquired the bulk of eToys' remaining assets for $5 million.[4] Bain Capital owns KB Toys. The law firm Traub, Bonacquist & Fox represented the creditors in the Chapter 11 bankruptcy proceedings. Paul Traub, a partner in the firm, had shortly before formed a company called Asset Disposition Advisors, LLC with Barry Gold. This relationship became controversial when Gold was appointed CEO of eToys. Some complained there was a conflict of interest, though a judge later found no fault.[5][6]

Subsequent ownership

Nearly all the eToys assets were acquired by KB Toys in two separate bankruptcy auctions, then later sold to D. E. Shaw, a New York-based hedge fund. The website was eventually reopened by eToys Direct Inc., a descendant of Internet startup and KB Toys partner, and a subsidiary of Parent Company. It continued to market toys by mail order under the eToys name through both the website and printed catalogs. Parent Company and nine of its subsidiaries including eToys Direct filed for Chapter 11 bankruptcy on December 22, 2008.[4] was acquired by Toys "R" Us in February 2009.[7]


  1. Cotriss, David (May 9, 2008). "Where are they now:". The Industry Standard.<templatestyles src="Module:Citation/CS1/styles.css"></templatestyles>[dead link]
  2. "eToys Named #1 Online Toy Store Website; eMarketer's Top 10 List Rates Outstanding Online General Toy Merchants". Business Wire. November 22, 2000.<templatestyles src="Module:Citation/CS1/styles.css"></templatestyles>
  3. "EToys Relents, Won't Press Suit". December 29, 1999.<templatestyles src="Module:Citation/CS1/styles.css"></templatestyles>
  4. 4.0 4.1 Rosenbloom, Stephanie (December 30, 2008). "Parent Company, a Retailer, Files for Bankruptcy". The New York Times. Retrieved May 2, 2010.<templatestyles src="Module:Citation/CS1/styles.css"></templatestyles>
  5. "Potential Conflict Problem for Bankruptcy Law Firm". White Collar Crime Prof Blog. July 26, 2005.<templatestyles src="Module:Citation/CS1/styles.css"></templatestyles>
  6. Pereira, Joseph (July 25, 2005). "EToys Investors Claim Conflict At Law Firm". The Wall Street Journal. Archived from the original on July 25, 2005.<templatestyles src="Module:Citation/CS1/styles.css"></templatestyles>
  7. Anderson, Mae (February 12, 2009). "Toys 'R' Us buys, other sites". The Associated Press. Archived from the original on February 15, 2009.<templatestyles src="Module:Citation/CS1/styles.css"></templatestyles>

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