Russ Berrie wasn’t just a businessman. He was a guy who understood that sometimes, a person just needs to buy a five-inch plastic troll with neon pink hair on a Tuesday afternoon.
If you grew up between the 1960s and the early 2000s, you almost certainly owned something with that iconic red and white RUSS tag. Maybe it was a "Fuzzy Wuzzie." Maybe it was a teddy bear that felt slightly higher quality than the ones at the grocery store. Or maybe it was one of those "Luv Pet" figurines that sat on your grandmother’s windowsill.
For decades, Russ Berrie and Company was the undisputed titan of the "impulse gift" market. They didn't sell things people needed; they sold things people wanted the second they saw them. But then, it all kind of vanished. One day they were in every Hallmark and airport gift shop in the world, and the next, the name was relegated to the "vintage" section of eBay.
What actually happened to the empire that Russell Berrie built with $500 and a rented garage? It’s a messy story of corporate rebranding, bankruptcy, and a legacy that now belongs to the company behind Squishmallows.
The Garage Start and the $500 Gamble
Russ Berrie was a Bronx-born salesman. Honestly, he was a salesman’s salesman. He didn't have a college degree—he didn't have the patience for it—but he knew how to move merchandise. In 1963, while still working as a manufacturer’s rep, he got tired of bosses ignoring his product ideas.
He took $500, rented a tiny garage in Palisades Park, New Jersey, and started his own firm.
The strategy was simple: "Make Someone Happy." That became the slogan, but the business model was more about the "impulse buy." Berrie realized that people would spend a few bucks on a whim if the item hit an emotional nerve. His first big hits weren't high-tech. They were things like the "Bupkis Family"—little rubbery dolls with weird faces.
By the late 1960s, he was doing millions in sales. He wasn't just selling toys; he was selling "three-dimensional greeting cards." If you couldn't find the right words, you bought a Russ Berrie figurine that said, "I Love You This Much" with its arms stretched out.
When Trolls Ruled the Earth
You can't talk about Russ Berrie and Company without talking about the Trolls. While Thomas Dam in Denmark originally created the "Good Luck Troll" in the 50s, a copyright loophole in the U.S. allowed a bunch of companies to flood the market with their own versions.
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Russ Berrie didn't just participate; they dominated.
In 1992 alone, the company sold roughly $150 million worth of those wild-haired creatures. Think about that. That's a lot of plastic and mohair. At the height of the craze, trolls accounted for a massive chunk of the company's revenue. It was the ultimate impulse gift. They were cheap, collectible, and everywhere.
But Russ was smart. He knew fads died. He famously once said that he had seen so many trends come and go that nothing surprised him anymore. He used the troll money to diversify, buying up other gift companies and expanding into home decor and photo frames.
The Pivot That Changed Everything
When Russell Berrie passed away in 2002 at age 69, the company lost its soul and its primary salesman. Without his gut instinct for the "next big thing," the leadership started looking at the spreadsheets instead of the store shelves.
They decided the gift business was too volatile.
In a move that still baffles some old-school collectors, the company started pivoting toward "infant and juvenile" products. They bought Sassy, Inc. and Kids Line LLC. They wanted steady, predictable sales from baby mattresses and crib bedding rather than the boom-or-bust cycle of plush toys and trolls.
By 2009, the transformation was so complete that the shareholders voted to change the corporate name entirely. Russ Berrie and Company officially became Kid Brands, Inc. The "gift" side of the business—the bears, the mugs, the stuff we actually associate with the brand—was sold off to a separate entity called The Russ Companies (TRC).
The 2011 Crash
This is where it gets confusing for people trying to find their favorite childhood bears.
The "new" Russ Companies (TRC) didn't last long. Without the backing of the original corporate infrastructure, and facing a brutal retail environment in 2011, they filed for Chapter 7 Liquidation Bankruptcy.
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- The inventory was auctioned off.
- The websites went dark.
- The "Shining Stars" program (where you could "buy" a star and get a plush toy) essentially evaporated, leaving thousands of kids with codes they couldn't register.
Meanwhile, Kid Brands, Inc. (the former parent company) was having its own nightmares. They faced delisting from the New York Stock Exchange, internal accounting scandals, and eventually, their own bankruptcy filings. The "Russ Berrie" era didn't just end; it imploded in a series of legal filings and liquidation sales.
Who Owns the Brand Now?
If you see a new product with a Russ Berrie logo today, it’s coming from a very different place.
In 2018, Jazwares—the toy giant that owns Squishmallows—acquired the Russ Berrie and Applause brands. They didn't buy the old factories or the old debt; they bought the names and the intellectual property.
Jazwares, which is now owned by Warren Buffett’s Berkshire Hathaway, has been slowly revitalizing the brand. They know there’s a massive "nostalgia tax" they can collect from Millennials and Gen Xers who want to buy their own kids the same bears they had in 1988.
Why the Brand Still Matters (The E-E-A-T Perspective)
From a business standpoint, Russ Berrie is a case study in founder-dependent success. Russell Berrie understood the psychology of the retail shelf better than almost anyone in history. He knew that a plush dog needs to "look at you" to get bought. He knew that the price point had to be low enough that a husband wouldn't feel guilty buying it for his wife on the way home from work.
When you remove the person who understands the "why" and replace them with a board of directors focused on "juvenile furniture categories," you lose the magic.
The Real Value for Collectors
If you’re looking at your old collection, here’s the reality:
- Mass Production: Most Russ Berrie items were made by the millions. Unless it’s a very early 1960s "Bupkis" doll or a rare limited-edition bear with tags, it probably isn't worth a fortune.
- The "Red Tag" Rule: Collectors generally look for the older tush tags. The items produced after the 2009 name change are often considered lower quality by enthusiasts.
- Nostalgia over Cash: The value of Russ Berrie today is mostly emotional. It represents a time when gift shops were a destination, not just a corner of a CVS.
Actionable Steps for Russ Berrie Fans
If you're sitting on a pile of old Russ Berrie plush or thinking about getting back into the brand, here's what you actually need to do:
- Check the Tush Tags: If you are selling on eBay, look for the "Oakland, NJ" address on the tag. This indicates the "Golden Era" of the company before the 2000s corporate reshuffling. These pieces hold their shape and value much better than the later mass-market iterations.
- Don't Toss the Trolls: Even though they were mass-produced, certain Russ Trolls (like the holiday-themed ones or the giants) have a surprisingly steady market among "Troll-hunters."
- Look for the Jazwares Relaunch: If you want new Russ products, keep an eye on Jazwares. They are slowly integrating the Russ "style" into their modern plush lines, often blending the classic feel with the super-soft materials used in Squishmallows.
- Support the Foundation: The money Russell Berrie made didn't just vanish into corporate pockets. The Russell Berrie Foundation is still very active, particularly in New Jersey and in diabetes research at Columbia University. It's one of the few parts of the original "Russ" empire that is still functioning exactly as intended.
The era of the $5 impulse gift might be different now—we buy digital skins or cheap Amazon gadgets—but the "Make Someone Happy" philosophy started in that New Jersey garage is still the blueprint for the entire toy industry.