Troubled toy titan FAO Inc. said Friday that both its direct and retail sales had been significantly below expectations.
The King of Prussia, PA-based company had hoped initial holiday marketing efforts at the beginning of November would show some improvement. If the downward trend continues, FAO doesn’t anticipate liquidity to operate normally in November. December’s prospects will depend on if holiday sales improve.
A sale of the company–which includes FAO Schwarz, The Right Start and Zany Brainy — is one alternative being considered.
FAO has requested an advance from lenders, and is asking vendors to reduce shipments and extend payment dates to January 1, 2004.
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