Raymond L. Arthur's move into the CFO's office at Toys "R" Us Inc. comes at a pivotal time for the company, landing the executive in the middle of a planned reorganization that will determine the retailer's future.

These are tough times in toyland, with multiple bankruptcies (KB Toys Inc., FAO Inc. and Zany Brainy Inc.) and ongoing pressure from Wal-Mart Stores Inc. and Target Corp. Toys "R" Us scuttled its clothing chain earlier this year, agreeing to sell 124 Kids "R" Us stores to Office Depot Inc. for $197 million. And the Wayne, N.J.-based company has hired Credit Suisse First Boston to help it assess its options.

Company bulls believe Toys "R" Us will ultimately decide to sell some of the real estate under its stores or even its profitable Babies "R" Us division as a way to raise cash. Such decisions make for a short grace period for Arthur, named CFO in April to replace the retiring Louis Lipschitz. Arthur joined Toys "R" Us as controller in 1999 and moved over to be CFO of the company's burgeoning online effort shortly after. In 2002 Arthur was named the company's online president.

Toys "R" Us is likely to unveil its restructuring plan this month. - Lou Whiteman

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