This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Gap Turns to eToys Founder for Online Group

Toby Lenk rode famous dot-bomb eToys into the ground, but that hasn't deterred Gap (GPS) from hiring him.

The apparel retailer on Thursday announced that it has hired Lenk to head its online operations. Lenk formerly served as founder and chief executive officer of eToys, which closed its doors after filing for Chapter 11 bankruptcy two years ago.

"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," Gap CEO Paul Pressler said in a statement.

Lenk, who will report to Pressler, will oversee the e-commerce sites of Gap, Banana Republic and Old Navy, as well as the company's online distribution center.

eToys was one of the most spectacular flame-outs of the dot-com bust. Once seen as a giant-killer, eToys successfully held off competitors such as (AMZN) and Toys 'R' Us (TOY) to become the leader in online toy sales in 1998 and 1999.

But the company fell far short of revenue expectations in the fourth quarter of 2000, hastening its demise. By the end of that year, it had racked up an accumulated deficit of nearly $430 million in just over three years of operations.

Under Lenk, eToys had the dubious distinction of posting net losses that were nearly as big or bigger then its total revenue in every year it operated as a public company. In its fiscal year ended March 31, 2000, its last full year of operation, the company's net loss ballooned to $189.6 million, or $1.78 a share, on $151 million in sales.

After filing for bankruptcy, eToys sold its name, Web site, trademarks and inventory to KB Holdings, the parent company of KB Toys. Since the company shuttered its site, Lenk has focused on venture capital investing, Gap said.

Lenk is replacing Michael Tucci, who resigned.

Lenk, who worked for Walt Disney (DIS) from 1991 to 1996, is only the latest Disney expatriate to join Gap. Pressler, who became CEO in September, had worked for Disney for 15 years prior to joining the company. The company hired Byron Pollitt, another longtime Disney manager, as its chief financial officer in January.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs