Doesn't sound good to me.
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December 3, 2003
FAO Inc. to file for bankruptcy protection
FAO Inc. announced Tuesday that it expects to file Chapter 11 bankruptcy later this week. The company said that the purpose of the filing was to allow it to sell its FAO Schwarz and The Right Start businesses and assets and to liquidate its Zany Brainy business in an orderly manner.
In August, FAO executives announced it had completed the first round of boutique installations in Saks Inc.'s Department Store Group stores, including two boutiques at the Boston Store in Mayfair Mall in Wauwatosa and one at the Boston Store in the Shops of the Grand Avenue in downtown Milwaukee.
FAO and Saks announced an agreement in February in which FAO would install "store-in-a-store" boutiques utilizing its FAO Schwarz, Zany Brainy, Right Start, and FAO Schweetz brands in Saks Department Store Group, which includes stores run by Carson Pirie Scott & Co. in Milwaukee.
In its brankurptcy filing, Schwartz disclosed that it had engaged liquidators to sell inventory of all three of its brands pending the outcome of its efforts to find buyers for the FAO Schwarz and The Right Start businesses and close a transaction by Dec. 15th. If the deadline was not met, the company could be required to accelerate the liquidation of those two businesses and sell remaining assets. Capital Strategies Group Inc., FAO's investment banking consultant, will overseas any acquisition offers.
The company stated that customers and store employees should not see any significant difference in operations at its stores as a result of the filing through the time its wind-down is completed early next year.
The company stated that, based on its recent efforts to sell all or a portion of its business during November, it did not expect any recovery would be available to its common stockholders and that it was taking steps immediately to delist its common stock from Nasdaq.
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This is an older article, but they've filed twice in one year, and a cursory search shows lots of negative feedback on their survival.
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December 3, 2003
FAO Inc. to file for bankruptcy protection
FAO Inc. announced Tuesday that it expects to file Chapter 11 bankruptcy later this week. The company said that the purpose of the filing was to allow it to sell its FAO Schwarz and The Right Start businesses and assets and to liquidate its Zany Brainy business in an orderly manner.
In August, FAO executives announced it had completed the first round of boutique installations in Saks Inc.'s Department Store Group stores, including two boutiques at the Boston Store in Mayfair Mall in Wauwatosa and one at the Boston Store in the Shops of the Grand Avenue in downtown Milwaukee.
FAO and Saks announced an agreement in February in which FAO would install "store-in-a-store" boutiques utilizing its FAO Schwarz, Zany Brainy, Right Start, and FAO Schweetz brands in Saks Department Store Group, which includes stores run by Carson Pirie Scott & Co. in Milwaukee.
In its brankurptcy filing, Schwartz disclosed that it had engaged liquidators to sell inventory of all three of its brands pending the outcome of its efforts to find buyers for the FAO Schwarz and The Right Start businesses and close a transaction by Dec. 15th. If the deadline was not met, the company could be required to accelerate the liquidation of those two businesses and sell remaining assets. Capital Strategies Group Inc., FAO's investment banking consultant, will overseas any acquisition offers.
The company stated that customers and store employees should not see any significant difference in operations at its stores as a result of the filing through the time its wind-down is completed early next year.
The company stated that, based on its recent efforts to sell all or a portion of its business during November, it did not expect any recovery would be available to its common stockholders and that it was taking steps immediately to delist its common stock from Nasdaq.
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This is an older article, but they've filed twice in one year, and a cursory search shows lots of negative feedback on their survival.