FAO announced that its liquidators have given it permission to keep three of its flaship store and the Right Start stores out of the liquidation through Wednesday, December 17th.  FAO said in a filing that a $62.5 million bid has been received for the Right Start chain.  While the bidder has not been revealed, the bankruptcy court is expected to approve the transaction this week. 

 

While some reports claim that the FAO Schwartz retail outlets will be sold store by store, if at all, others indicate the 15 locations could still be sold together.  At this point, Ken Hakuta is still in the picture (see 'Wall-Walker King Wants FAO'); he's reported to have offered, along with co-investors, $25 million, but is expressing interest mostly in the FAO online business.  Donald Trump has also been reported as expressing interest in purchasing FAO Schartz.

 

Without substantial offers being accepted, FAO Schwartz could close after being in business for 141 years.

 

And in a related story, another toy company is being forced to shutter by the predations of large discount chains.  Click here for the full story.