Headlines

The Toys Are Coming Back Out

FAO receives approval for reorganization plan

Published

21 years ago

April 8, 2003

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FAO Inc. (King of Prussia, Pa.) has received confirmation of its plan of reorganization from the U.S. Bankruptcy Court for the District of Delaware. The court's ruling allows the children's specialty retailer to emerge from Chapter 11 and begin making distributions to creditors pursuant to the terms of the plan.

As part of its plan of reorganization, FAO said it has received a commitment for up to $77 million in bank financing.

The retailer, which operates about 285 Zany Brainy, Right Start and FAO Schwarz specialty stores, filed for bankruptcy protection only 12 weeks ago. It has since begun an auction of about 70 store leases.

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