Bankrupt FAO Gets Additional Funding

Share this content:
FAO Inc. said yesterday that additional support from its vendors and lenders has allowed it to reach an agreement regarding final terms with its new lenders, led by Fleet Retail Finance and the group of investors purchasing $30 million of its convertible preferred stock. As a result, FAO expects its confirmed plan of reorganization to become effective early next week, at which point it will emerge from bankruptcy and begin making distributions to creditors. The group is led by Hancock Partners and Kayne Anderson Capital Advisors and includes Fred Kayne, chairman of FAO Inc.; Richard Kayne, a board member and CEO of Kayne Anderson; and Saks Inc. The company also announced that its right to use cash collateral has been extended through April 24. The extension was consented to by the company's existing lenders at a hearing yesterday at the U.S. Bankruptcy Court for the District of Delaware.


Next Article in Multichannel Marketing

Sign up to our newsletters

Company of the Week

We recently were named B2B Magazine's Direct Marketing Agency of the Year, and with good reason: We make real, measureable, positive change happen for our clients. A full-service agency founded in 1974, Bader Rutter expertly helps you get the right message to the right audience at the right time through the right channels. As we engage our clients' audiences along their journey, direct marketing (email, direct mail, phone, SMS) and behavioral marketing (SEM, retargeting, contextual) channels deliver information relevant to the needs of each stage. We are experts at implementing and leveraging marketing technologies such as CRM and marketing automation in order to synchronize sales and marketing communications. Our team of architects and activators plan, execute, measure and adjust in real time to ensure the strategy is working as needed and change things if it's not.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above