Ch. 11 Filing Gives FAO 60-Days to Decide

BELLEVUE, WA-Toy retailer FAO Inc. has 60 days to pay Bellevue Square $65,000 in past due rent or make it’s 11,000-sf FAO Schwartz store here one of the 75-80 stores it will likely close as part of its reorganization under Chapter 11 of the U.S. Bankruptcy Code.

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.