EToys.com
| Company type | Public |
|---|---|
| Industry | Online retail |
| Founded | November 3, 1997 |
| Defunct | 2009 |
| Fate | Bankruptcy; assets acquired by KB Toys and later Toys "R" Us |
Key people | Barry Gold (CEO) |
| Products | Toys |
| Parent | Idealab (founder), later Brainplay.com (affiliate), eventually Toys "R" Us (owner of domain) |
eToys.com emerged as a pioneering online toy retailer, established on November 3, 1997. Following its initial public offering on January 4, 1999, where shares were priced at $20 and closed at $76 on the debut day, the company experienced a swift surge in market value, becoming emblematic of the dot-com bubble. It filed for bankruptcy on April 1, 2001, and shortly thereafter discontinued its operations. Ownership of the etoys.com domain changed hands multiple times before being acquired by Toys "R" Us in February 2009.
History
Founded under the Idealab umbrella in November 1997, eToys rapidly established itself as a prominent player in the online toy retail sector. Its 1999 IPO was notably successful, with stock prices climbing sharply on opening day. eMarketer identified eToys as the industry standard among internet toy retailers. That year also saw eToys embroiled in a high-profile domain name conflict with the Swiss digital art collective etoy, which ended after eToys withdrew amid widespread public criticism.
Bankruptcy
On approximately March 7, 2001, The Wall Street Journal disclosed that KB Toys had purchased the majority of eToys' remaining assets for $5 million. KB Toys operates under the ownership of Bain Capital. Creditors in the Chapter 11 bankruptcy case were represented by the law firm Traub, Bonacquist & Fox. Notably, partner Paul Traub had recently co-founded Asset Disposition Advisors, LLC alongside Barry Gold, who was subsequently named CEO of eToys. This arrangement prompted concerns over potential conflicts of interest; however, judicial review found no wrongdoing.
Subsequent ownership
Following bankruptcy auctions, most of eToys’ assets were acquired by KB Toys, which later transferred them to D. E. Shaw, a hedge fund based in New York. The eToys.com website was revived by eToys Direct Inc., an offshoot of Brainplay.com—a startup affiliated with KB Toys—operating under Parent Company. This entity sold toys through both online channels and mail-order catalogs. On December 22, 2008, Parent Company along with nine subsidiaries including eToys Direct filed for Chapter 11 bankruptcy protection. Eventually, in February 2009, Toys "R" Us took ownership of the eToys.com domain.
External links
- Articles with short description
- Toys "R" Us
- American companies established in 1997
- Retail companies established in 1997
- Internet properties established in 1997
- Retail companies disestablished in 2009
- Internet properties disestablished in 2009
- Toy retailers of the United States
- Online retailers of the United States
- Defunct online companies of the United States
- Companies that filed for Chapter 11 bankruptcy in 2001
- Companies that filed for Chapter 11 bankruptcy in 2008
- Dot-com bubble
- 1999 initial public offerings