Toysmart.com is closing its doors for good, a senior company executive who refused to be named confirmed yesterday.
The online retailer succumbed after majority owner Walt Disney Co. decided late last week not to inject extra funds to reposition toysmart and keep it as a going concern. About 110 workers at the company will lose their jobs.
Toysmart’s demise follows the high-profile failure last week of boo.com, a multinational online retailer of trendy sportswear apparel and accessories that could fulfill orders in 18 European and North American markets. Boo’s shareholders again refused additional financial support.
But the online toy retailing business has been hard hit. It was only recently that Kbkids.com fired a large chunk of its staff, including the vice presidents of marketing and merchandising.
And earlier this month, media company Viacom shut down Red Rocket, an online retailer of educational toys.
Visitors to the toysmart site yesterday were greeted with this note: “toysmart.com is closed this weekend for inventory.”