Toys R Us sells FAO Schwarz

Iconic toy brand FAO Schwarz has been sold by its parent company, Toys R Us. 

FAO Schwarz's assets have been sold for an undisclosed sum to the ThreeSixty Group, according to Fortune. California-based ThreeSixty Group manufactures and distributes children's toys and consumer products under a variety of labels. 

The flagship FAO Schwarz store in New York City closed in July 2015

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But FAO Schwarz-branded products live on and are sold in Toys R Us stores, a far cry from the massive playhouse-type showrooms that once housed the giant keyboard Tom Hank's character bounced on in the movie "Big." 

FAO Schwarz toys will now be designed and produced by ThreeSixty, and will reach stores in the fall of 2017. Until then, Toys R Us will continue to sell the line. 

"For over 150 years, FAO has provided a magical experience for children and we hope to keep this tradition alive by crafting fine toys and transformative retail experiences for generations to come,” Kirk McLean, co-founder of ThreeSixty Group, told Fortune. 

The intent is to grow the brand into new categories including arts and crafts and STEM-oriented (Science, Technology, Engineering and Mathematics) teaching aids and toys. 

Toys R Us bought FAO Schwarz in 2009, but subsequently embarked on a plan for transformation that includes cost-cutting and investing in digital properties.