Zany Brainy and The Right Start Stores
CALABASAS, Calif., Dec. 4 /PRNewswire/ -- Inventory clearance sales have
begun in all 142 Zany Brainy, FAO Schwarz and The Right Start stores
nationwide. The sales commenced after parent company FAO, Inc.
(Nasdaq: FAOO), today filed voluntary petitions under Chapter 11 of the
Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware for
itself and its operating subsidiaries ZB Company, Inc. and FAO Schwarz, Inc.
Subject to bankruptcy court approval, FAO, Inc. appointed a joint venture
consisting of Calabasas, Calif.-based Buxbaum Group, LLC; Columbus, Ohio-based
SB Capital Group, LLC; and Boston, Mass.-based Tiger Capital Group, LLC, as
exclusive agent to conduct an inventory clearance sale in all three brands
throughout the holiday season. Departments within Parisian, Carson Pirie
Scott, Proffitt's McRae's, Boston Store, Bergner's, Herberger's, Younkers and
Saks Fifth Avenue department stores, as well as in Borders stores will not
participate in the event.
In an earlier release, the company said that the purpose of the Chapter 11
filing was to allow it to sell its FAO Schwarz and The Right Start businesses
and assets, and to liquidate its Zany Brainy business (including leases) in an
orderly manner. The company disclosed that, at the request of its lenders, it
had engaged the liquidators to sell inventory of all three of its brands
pending the outcome of its efforts to find buyers for the FAO Schwarz and The
Right Start businesses, and close a transaction by December 15, 2003. The
company stated that if a transaction was not completed by December 15, 2003,
it could be required to accelerate the liquidation of those two businesses and
sell remaining assets (including brands and leases) to conduct an orderly
wind-up of its affairs.
The joint venture stated that, aside from the deals being offered through
the sale on every item beginning Thursday, December 4, 2003, customers should
not see any significant difference in operations at the stores as a result of
the filing through the time its wind-down is completed early next year. Daily
operations will continue, stores will remain open, and transactions that occur
in the normal course of business will go on generally as before, though sales
would be final.
"Coming within a week after the kick-off of the 2003 holiday season, this
sale will offer discounts on every item in every store," said David Ellis,
principal of Buxbaum Group.
"The sale creates a great opportunity for savings on famous brands,
including Leapfrog, Playmobile, Lego and Barbie, as well as such treasured
collectibles as Steiff Plush Animals and Madame Alexander Dolls, which are
rarely seen on sale," noted Dan Kane, principal of Tiger Capital Group.
"This is truly a once in a lifetime opportunity to get across-the-board
discounts on the high quality toy, hobby and educational products for which
these three premier retail brands are known" added SB Capital principal Scott
All sales will be final during the inventory clearance sale, with cash and
credit cards accepted. For a complete list of store locations, visit
www.fao.com and click on the store locater for each brand.
SOURCE Buxbaum Group, LLC
/NOTE TO EDITORS: For a list of store locations, contact Buxbaum Group or
Parness & Associates./
/CONTACT: David Ellis of Buxbaum Group, 1-800-990-6820; or Bill Parness
or Lisa Kreda of Parness & Associates Public Relations, +1-732-290-0121,
firstname.lastname@example.org, for Buxbaum Group/
/Web site: http://www.fao.com /
CO: Buxbaum Group, LLC; ZB Company, Inc.; FAO Schwarz, Inc.; FAO, Inc.
IN: REA FIN ADV RLT
SU: BCY JVN
-0- Dec/04/2003 16:04 GMT
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