US toy store faces bleak future
One of the worlds most famous toy shops, FAO Schwarz, has filed for Chapter 11 bankruptcy protection.
After a series of negotiations through December, FAO failed to win agreement on restructuring its loans from major lender, Wells Fargo Retail Finance.
As part of the bankruptcy filing the FAO reached agreement with its existing bank lenders to fund employee obligations as well as ongoing needs.
The company will close up to 80 of its 253 stores, but will maintain its flagship operation on Manhattan’s Fifth Avenue.