Toys R Us CEO, COO Resign Ahead of Buyout

Toys R Us Inc. (TOY) Tuesday said Chairman and Chief Executive John Eyler and Chief Operating Officer Christopher Kay have resigned from the toy retailer, which is being bought by an investment group.

The company said the resignations, which were announced internally earlier Tuesday, will go into effect as soon as the company goes private.

Toys R Us agreed in March to a $6.6 billion takeover offer by private equity firms Kohlberg Kravis Roberts & Co. (KKR) and Bain Capital (search) and real estate group Vornado Realty Trust (search). Toys R Us shareholders are scheduled to vote on the agreement on Thursday, and the deal is expected to close in July.

Richard Markee, Toys R Us vice chairman and president of Babies R Us, will act as interim CEO while the company searches for Eyler's successor, the company said.

Eyler joined the company as president and CEO in January 2000 after running upscale toy store FAO Schwarz (search) for several years. He replaced Michael Goldstein, who held the role on an interim basis after the board forced the resignation of Robert Nakasone in August 1999.