FAO Turns the Page on Chapter 11

Share this content:
FAO Inc. emerged from Chapter 11 bankruptcy last week.


As part of its reorganization plan, the King of Prussia, PA-based toy marketer closed on the sale of $30 million of its convertible preferred stock to an investor group led by Hancock Park Associates and Kayne Anderson Capital Advisors.


The company also closed on $77 million in bank financing to be used to fund operations. This includes a $67 million revolving credit facility provided by a group of banks, led by Fleet Retail Finance Inc., and a $10 million term loan provided by Back Bay Capital Funding LLC.


First priority upon emerging from bankruptcy will be to get all FAO Schwarz, Zany Brainy and The Right Start stores back in stock on inventory. Since the bankruptcy filing in January, the company focused on reducing its overall level of inventory and liquidating old and discontinued inventory from stores.


Also as part of the reorganization plan, FAO declared a reverse split last week of its common stock with 15 existing shares combined into one new share. The move was one of the transactions contemplated by its bankruptcy reorganization plan.


Loading links....
close

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 »

DMN's 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