Charles Lazarus has died aged 94 in New York today.
He opened his first Toys R Us store in 1957.
A spokesman for the toy chain said: “There have been many sad moments for Toys R Us in recent weeks and none more heartbreaking than today’s news about the passing of our beloved founder Charles Lazarus.
“He visited us in New Jersey just last year and we will forever be grateful for his positive energy, passion for the customer and love for children everywhere.
“Our thoughts and prayers are with Charles’ family and loved ones.”
Toys R Us announced on Wednesday last week it would close all of its UK stores after administrators failed to find a buyer for the collapsed retailer, resulting in the loss of 3,000 jobs.
The firm also announced plans to shut down its US operations last week.