Amazon.com has lost its first appeal to retain its e-commerce agreement with Toys "R" Us, writes Internet News. The appellate division of the New Jersey Superior Court denied Amazon's motion to stay the termination of the contract, which Toys "R" Us intends to go ahead with by June 30. New Jersey Superior Court judge Margaret Mary McVeigh in March ruled that Toys "R" could terminate the e-commerce and merchandising agreement with Amazon.com.

"We did not prevail on our stay motion; operating profit could be negatively impacted by as much as $50 million for 2006 and $25 million for the second quarter 2006, much of which is due to ToysRUs.com's failure to pay fees for the second quarter," Amazon said in a filing Friday with the Securities and Exchange Commission.

Toys "R" Us will relaunch the ToysRUs.com and BabiesRUs.com sites with a new look and more product information.