Edward “Toby” Lenk, who founded eToys Inc., an online retailing pioneer, in the late 1990s, has been named to run the online unit of The Gap Inc. (San Francisco).
Lenk's responsibilities will include oversight of online sales for Gap, Old Navy and Banana Republic, as well as the retailer's customer call centers.
The assignment reunites Lenk with Gap ceo Paul Pressler, who joined the retailer last fall after an eight-year stint as the head of Walt Disney Co.'s amusement parks. Lenk was vp of strategic planning for Disney's theme parks from 1994-96.
eToys soared to a $10 billion market value in 1999 and then crashed into bankruptcy court in early 2001, unraveling amidst delivery problems and intensifying competition from industry giants such as Toys “R” Us (Paramus, N.J.) and Wal-Mart Stores (Bentonville, Ark.).
At eToys' peak, Lenk's wealth surpassed $600 million on paper. By the time the company went bankrupt, his stock was nearly worthless. As part of its liquidation, eToys sold its name and other intellectual assets for $3.4 million to KB Toys Inc. (Pittsfield, Mass.).
Gap is counting on Lenk's expertise to help the company continue its recent climb out of a sales slump that began in mid-2000. “Toby's intimate knowledge of online retailing will be a tremendous asset as we leverage our growing online businesses to serve our customers and provide a seamless and integrated shopping experience with our stores,” Pressler said in a statement.