Saks Inc. and bankrupt toy retailer FAO Inc. signed letters of intent to jointly own and operate online and in-store baby-gift registries for their respective customers.
The deal announced yesterday was part of a Saks plan to buy a minority interest in FAO's equity and obtain a seat on that company's board of directors. Owner of FAO Schwarz, Zany Brainy and The Right Start retail chains, FAO recently filed for Chapter 11 protection from its creditors.
Under the plan, Saks, Birmingham, AL, also will sell FAO merchandise in most of its department stores. Supported by undisclosed marketing initiatives, the arrangement is slated for the second half of this year.
