On April 7, cataloger/retailer FAOreceived confirmation of its plan of reorganization from the U.S. Bankruptcy Court for the District of Delaware. The court’s ruling allows the company to emerge from Chapter 11. The King of Prussia, PA-based FAO, which owns children’s products cataloger/retailer The Right Start, upscale toys marketer FAO Schwarz, and toys retailer Zany Brainy, filed for Chapter 11 in January.
As part of its plan of reorganization, FAO received a commitment for up to $77 million in bank financing to be used to fund the FAO’s operations once the plan becomes effective, which David Levene, of Levene, Neale, Bender, Rankin & Brill and FAO’s reorganization counsel, estimates will be “sometime this month.”