FAO Schwarz was founded in 1862 and holds the distinction of being the oldest toy company in the United States. Their former New York City flagship store was a popular tourist attraction, and remained in operation until July 2015.
In 1984, Jim Henson and his team created a Muppet boutique, cited as the first "shop-within-a-shop," which opened in FAO Schwarz's flagship location. The boutique highlighted The Muppets Take Manhattan, and prominently featured the Muppet Babies (who would get their own boutique at Macy's later that year). Years later, The Muppet Whatnot Workshop opened in 2008.