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Child World was an American toy retailer founded in 1962. It grew to 182 sites and revenues of $830 million (~$1.62 billion in 2023) before failing in 1992. It was known for the distinctive stylized castle store exterior adopted after its 1975 purchase of the Children's Palace store chain.
 | |
| Company type | Corporation |
|---|---|
| Industry | Retail |
| Founded | 1962 |
| Defunct | September 12, 1992 |
| Fate | Liquidation Rebranded 2022 |
| Headquarters | Centerville, Ohio |
| Products | Toys |
| Website | www.ChildrensPalace.net |
History
editBeginnings and early expansion
edit
Child World was founded by Joseph Arnesano & Sid Schneider in Quincy, Massachusetts in 1962. It became a publicly-traded corporation in 1968, based in Avon, Massachusetts.[1]
It acquired Children's Palace from Kobacker Stores in 1975.[2] Post merger, Child World began incorporating the Children's Palace stylized castle decor into its new stores. The 1981 purchase of Child World by Cole National Corporation was followed by 1984's Kohlberg Kravis Roberts takeover of Cole.[3]
Downfall
editCole National began restricting the amount of money it provided to the subsidiary causing cash shortages. Vendors including LEGO refused to extend credit which left stores with empty shelves. Meanwhile Toys "R" Us continued to grow and Child World had to defend a lawsuit from the Consumer Products Safety Commission.[3]
Child World ended 1990 with US$830 million in assets but US$1 billion in liabilities. Cole National sought to sell the ailing chain. A US$157 million deal fell through and there were no other buyers. In 1991, it emerged senior executive James Maybury had been diverting revenue to fund a museum he intended to open in Dracut, MA. Cole National had to perform a debt trade with fellow venture capital firm Avon Investment Limited Partnership later that year in order to shed the business. Avon appointed former Toys "R" Us executives, but results remained poor and in early 1992 Child World closed 26 stores.[3]
Bankruptcy, failed merger, and liquidation
editIn April 1992, Child World applied for Chapter 11 bankruptcy protection causing former Child World managers and Cole National executives to file a class-action lawsuit against Avon, accusing it of sabotaging the company so they could liquidate it and avoid payments to them.[4] A further 54 stores were identified for closure as Child World focussed on 71 previously profitable Northeastern United States stores it sought funds to keep open.[1] Lenders were not forthcoming and the business reported further losses.[1] Avon sought a last ditch merger of Child World with Lionel Corporation's also financially troubled Lionel Kiddie City[4] but were ultimately unable to agree terms. An “inventory clearance" sale became a liquidation; most headquarters staff were sacked, and by mid September 1992 Child World ceased to exist.[4]
Children's Palace was rebranded by an investment firm in 2022. Children's Palace operates several year-round locations in Ohio and Florida. Children's Palace also operates seasonal pop-up stores during the holiday shopping season.
Store design
edit
Child World was known largely for making its stores resemble castles, complete with turrets, battlements, and three arches (two small, one large) in the front door.[5]
In popular culture
editA Child World store that stood at 7600 West Roosevelt Road in Forest Park, Illinois (since demolished), was used in Martin Scorsese's 1986 film The Color of Money as the place where Vincent Lauria (Tom Cruise) worked as a toy-store clerk, and where retired pool hustler Eddie 'Fast Eddie' Felson (Paul Newman) came to see him to convince him to be his protégé in pool.[6][7]
Mark Wahlberg mentions it in Ted 2, as the place where Ted the foul-mouthed bear was purchased.[8]
References
edit- ^ a b c Bryant, Adam (May 8, 1992). "Child World Files for Bankruptcy". The New York Times. Archived from the original on 2008-05-29. Retrieved 2007-11-30.
- ^ "Child World Buys Toy Division". The Wall Street Journal. April 14, 1975. p. 3. ProQuest 134015602. Archived from the original on March 5, 2016. Retrieved July 5, 2017.
Child World Inc., said it bought for $3.5 million K.B. Marketing Systems Inc.'s toy division, consisting of nine retail stores under the name Children's Palace.
Alternate Link Archived 2023-01-11 at the Wayback Machine via ProQuest. - ^ a b c "Company History: Cole National Corporation". Funding Universe. Archived from the original on 2008-10-27. Retrieved 2008-11-03.
- ^ a b c Liebeck, Laura (August 3, 1992). "Child World is grounded: rescue by Lionel falters - Lionel Kiddie City". Discount Store News. Archived from the original on January 4, 2009. Retrieved June 22, 2009.
- ^ Heiler, Brian. "Vintage Toy Store Pictures Part Five". Plaid Stallions (blog). Archived from the original on 2008-05-10. Retrieved 2008-04-12.
- ^ "The '80s Movies: Rewind...The Color of Money". fast-rewind.com. Archived from the original on 2017-04-28. Retrieved 2017-04-27.
- ^ Demster, Chas. "Filming Locations of Chicago and Los Angeles: The Color of Money". itsfilmedthere.com. Archived from the original on 2017-08-26. Retrieved 2017-04-27.
- ^ "John Slattery:Shep Wild". IMDB. Archived from the original on 2022-11-13. Retrieved 2022-11-13.
