sweetgal154
New Member
- Joined
- Jun 8, 2003
- Messages
- 418
- Reaction score
- 0
FAO to File for Bankruptcy Again
December 02, 2003 11:03:00 AM ET
CHICAGO (Reuters) - FAO Inc., parent of the legendary upscale FAO Schwarz toy stores, said on Tuesday it would file for Chapter 11 bankruptcy protection for the second time in less than a year.
The 141-year-old retailer, best known for luxury gifts such as six-foot-tall teddy bears, said it still hoped to sell its FAO Schwarz and Right Start business, but would liquidate the Zany Brainy chain.
FAO emerged from bankruptcy protection in April, three months after filing for Chapter 11 in the wake of last year's dismal holiday season.
The retailer said last month that early holiday sales were much worse than expected and if sales did not pick up, it would not have enough liquidity to operate its business normally.
Toy retailers have been hit especially hard this year as mass merchants Target Corp. and Wal-Mart Stores Inc. slashed prices to attract customers.
FAO said it expects to file voluntary bankruptcy petitions later this week in Delaware, the same venue in which it filed for bankruptcy earlier this year.
The retailer said its lenders asked it to hire liquidators to sell inventory at all three of its chains if it can't find buyers for FAO Schwarz and Right Start by Dec. 15.
FAO said it did not expect any recovery for its common shareholders, and it was taking steps to immediately delist from the Nasdaq. Trading in its stock was halted earlier
December 02, 2003 11:03:00 AM ET
CHICAGO (Reuters) - FAO Inc., parent of the legendary upscale FAO Schwarz toy stores, said on Tuesday it would file for Chapter 11 bankruptcy protection for the second time in less than a year.
The 141-year-old retailer, best known for luxury gifts such as six-foot-tall teddy bears, said it still hoped to sell its FAO Schwarz and Right Start business, but would liquidate the Zany Brainy chain.
FAO emerged from bankruptcy protection in April, three months after filing for Chapter 11 in the wake of last year's dismal holiday season.
The retailer said last month that early holiday sales were much worse than expected and if sales did not pick up, it would not have enough liquidity to operate its business normally.
Toy retailers have been hit especially hard this year as mass merchants Target Corp. and Wal-Mart Stores Inc. slashed prices to attract customers.
FAO said it expects to file voluntary bankruptcy petitions later this week in Delaware, the same venue in which it filed for bankruptcy earlier this year.
The retailer said its lenders asked it to hire liquidators to sell inventory at all three of its chains if it can't find buyers for FAO Schwarz and Right Start by Dec. 15.
FAO said it did not expect any recovery for its common shareholders, and it was taking steps to immediately delist from the Nasdaq. Trading in its stock was halted earlier
J/K
