Store Closings Result in Sales Decline at FAO

Second-quarter net sales tumbled 49% at King of Prussia, PA-based FAO, the parent company of toys cataloger/retailer FAO Schwarz, children’s products cataloger/retailer The Right Start, and toys retail chain Zany Brainy. For the three months ended Aug. 2, sales were $46.3 million, compared with $90.0 million last year. The net loss for the quarter was $18.8 million, compared with a net loss of $18.2 million for the second quarter of fiscal 2002.

FAO filed for Chapter 11 bankruptcy protection in January; it emerged from bankruptcy three months later. As part of its restructuring, the company closed 111 stores, liquidated discontinued inventories, closed a distribution center, reduced administrative staff, and relocated administrative offices in New York and Los Angeles.

Partner Content

Hincapie Sportswear Finds Omnichannel Success in the Cloud - Netsuite
For more and more companies, a cloud-based unified data solution is the way to make this happen. Custom cycling apparel maker Hincapie Sportswear has leveraged this capability to gain greater visibility into revenue streams, turning opportunities into sales more quickly while gaining overall operating efficiency. Download this ecommerce special report from Multichannel Merchant to more.
The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.