Toys "R" Us, one of the best known toy retailers, was sold last night for $5.7 billion to a consortium of two private-equity firms, Bain Capital and Kohlberg Kravis Roberts & Co., and Vornado Realty Trust, according to people familiar with the matter.

The sale ends a seven-month auction of Toys "R" Us’s toy division that surprisingly culminated in the sale of the whole company. At first it was presumed that the retailer would keep its profitable baby products division Babies "R" Us.

But last month one of the bidders offered to buy the whole company, as two divisions proved difficult to separate.

Toys "R" Us is a successful toy retailer, attractive because of convenient property locations, but lately it began to lose market share to Wal-Mart Stores Inc. and other discount outlets.

KKR previously invested in European retailer VendexBB and some U.S. Hotels, but has not yet purchased a US retailer. Bain Capital, on the contrary, has been accumulating shares of toy retailers for the past four years, buying KB Toys, now re-emerging after Chapter 11 bankruptcy protection.