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In 1991, Murdough established a new toy business called Step 2 , now based in Streetsboro, Ohio, aimed at competing with and outselling Little Tikes. In 1999, Rubbermaid merged with Newell to form Newell Rubbermaid. The company was acquired by MGA Entertainment in September 2006 from Newell Rubbermaid for an undisclosed sum.
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On February 7, 2001, Toys "R" Us filed a complaint alleging that Step Two's Imaginarium websites infringed upon Toys "R" Us' US trademark for Imaginarium. Both this court case and the District Court case summarized below arose from this allegation.
Pets.com tried to build a customer base by offering discounts and free shipping, but it was impossible to turn a profit while absorbing the costs of shipping for heavy bags of cat litter and cans of pet food within a business field whose conventional profit margins are only two to four percent.
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