Toys “R” Us Inc., the toy retailer owned by Bain Capital LLC, withdrew its plan for an initial public offering after first filing with the U.S. Securities and Exchange Commission almost three years ago.

The 1,500-store toy chain, owned by the private-equity firm founded by Mitt Romney and partners KKR & Co. and Vornado Realty Trust, cited “unfavorable market conditions and the company’s recently announced executive leadership transition.”

The withdrawal yesterday came after the Wayne, New Jersey- based retailer’s Chief Executive Officer Gerald Storch announced last month he would step down amid competition from online toy sellers such as Inc.

Toys “R” Us, in a separate filing yesterday, reported that fourth-quarter revenue fell 2.6 percent to $5.77 billion from the year-earlier period, with same-store sales declining 4.5% domestically. Profit fell 30 percent to $239 million in the period and 75 percent to $38 million for the fiscal year ended Feb. 2, largely due to income-tax expenses and interest costs from debt refinancing, the company said.

Bain, with KKR and Vornado, bought the toy retailer in a deal valued at $6.6 billion in 2005. At that time, the chain was losing market share to the lower prices at Wal-Mart Stores Inc. and Target Corp. Toys “R” Us has tried a variety of tactics to remain relevant, with none ending the decline in same-store sales.

Earlier this month, Gimme Credit LLC analyst Kim Noland said the toy retailer had enough liquidity to keep operating, but that an IPO would be off the table, given Storch’s departure and its lack of growth.

Bain completed four deals valued at $17 billion from 2004 to 2007 and still owns all of the purchases, including Burlington Coat Factory Warehouse Corp. and Michaels Stores Inc.

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