The King of Prussia, Pa.-based toy retailer filed for federal protection from its creditors earlier this week, the same day Bellevue Square filed a lawsuit in King County Superior Court to collect the money it is owed. The bankruptcy filing gives FAO the extra 60 days to decide which of its 256 stores nationwide will be shuttered in the reorganization. A company spokesman was not immediately available for comment Thursday morning.

The company owns and operates 22 FAO Schwarz outlets, 61 Right Start locations and 169 Zany Brainy stores and is now trying to renegotiate leases with landlords nationwide. If it can't negotiate a rent reduction for its underperforming stores, they will likely be closed. As Zany Brainy is its largest chain, it will likely see most of the store closings.

FAO opened its Schwartz store at Bellevue Square in 1993. A sale on everything in the store is ongoing. The Downtown Seattle location has not initiated such a sale. FAO also operates one of its The Right Start stores at Bellevue Square and one of its Zany Brainy and stores at Redmond Town Center.