Toys R Us Inc. has withdrawn its plans to take the nation's largest toy retailer public, citing "unfavorable market conditions and executive leadership transition."

Toys R Us spokeswoman Kathleen Waugh told Reuters that the company was determined not to pursue the IPO after fourth-quarter results showed net income down 30 percent to $239 million from a year earlier. Additionally, revenue slipped to $5.8 billion from $5.9 billion.

The Wayne, N.J., company filed for a potential offering, which was pegged to raise around $800 million in 2010 but after three years has yet to make the move as it struggles with soft sales in the tough economy.

U.S. sales were down about 2 percent to $3.5 billion, with sales at stores open at least a year off by 4.5 percent.

Furthermore, Toys R Us announced in February that Gerald Storch would be stepping down as CEO and that the company would begin the search for a new CEO. The company said Storch will remain in his position as chairman of the company's board and stay on through a transition period. Waugh did not give an update on the company's search for a new CEO.

Toys R Us first went public in 1978 and was taken private in 2005 when it was acquired by an investment group that included Bain Capital Partners, Kohlberg Kravis Roberts & Co. and Vornado Realty Trust.

The company is the second high-profile IPO to fall out of the pipeline in recent months after January saw the owner of and Kelley Blue Book brands drop its estimated $300 million offer, citing market conditions.