Toy retailer FAO Inc. files for bankruptcy

NEW YORK (AP) _ FAO Inc., which owns the FAO Schwarz, Zany Brainy and Right Start toy-store chains, filed for Chapter 11 bankruptcy Monday. <br><br>The King of Prussia, Pa.-based company said it has reached

Monday, January 13th 2003, 12:00 am

By: News On 6

NEW YORK (AP) _ FAO Inc., which owns the FAO Schwarz, Zany Brainy and Right Start toy-store chains, filed for Chapter 11 bankruptcy Monday.

The King of Prussia, Pa.-based company said it has reached an agreement with lenders that will allow it to continue to operate without interruptions.

The company said it expects to meet with major creditors and file a reorganization plan soon, with the expectation of emerging from bankruptcy in the second quarter.

FAO listed assets of $257.4 million and liabilities of $238.4 million.