Toys R Us just bought FAO Schwartz  

I think that TRU will always have a customer base and that with their buying power, which is so much greater than discount KB Toys, they have a better chance of surviving.

KB Toys was a discount toy retailer, that primarly purchased close outs, and even would buy out other stores that were going out of business, buy their stock etc. they did not strive on the latest and greatest toys on the market, they also did not have a Great marketing plan or the best distribution routes etc. I know this as my previous life, pre kids, I was a discount retail buyer, I also worked for a time for a company that would purchase close outs and resale them to yes KB toys and other toys like that, Tuesday Morning, Home Goods, TJ Max, and yes Marshalls and Big Lots Oh and do not forget the dollar stores.

So yes while they went bust they really did not have much of a chance when the things they were selling were last years toys, overstocks etc and things that well just were not HOT toys. Their prices were not comparable either. they were fighting an up hill battle.

Toys R Us will probably survive for a while, but unless they come up with some kind of gimmick to grab people -- other than a talking giraffe, lol -- they'll probably eventually be forced to close as well due to walmart. All of the small shops are rolling up, and now the medium ones as well... pretty sad.