Tuesday, April 15, 2003

FAO recovery plan in jeopardy

The Associated Press

PHILADELPHIA - FAO Inc., which owns the FAO Schwarz toy chain, said an unexpected withdrawal of investors has jeopardized its plan to emerge from Chapter 11 bankruptcy protection by Friday.

The toy retailer said it is exploring alternatives to complete its plan, including obtaining replacement funding or selling all or part of its operations. "We are hopeful that there will not be a need to liquidate," FAO Inc. spokeswoman Renee Hollinger said.

The company, based in the Philadelphia suburb of King of Prussia, has the right to spend cash that was originally kept as collateral for loans. That right expires Friday unless extended by its lenders.

Tax payment due even with extension
Where you can mail till midnight
Poll: Time isn't right for tax cuts

GE engine sector must reduce jobs
Wella shareholder cool to P&G offer
Hill-Rom bed unit to cut 300 jobs
Tristate Summary

Technology lighting way for solar
Unsold items piling up
FAO recovery plan in jeopardy
Business Digest