Two flagship FAO Schwartz retail locations, in New York and Las Vegas, have been sold, along with the Internet and catalogue portions of the business, to D.E. Shaw & Co. for $20 million, pending approval by the bankruptcy court judge.  The investment company barely beat out other bidders in the battle for these properties.

 

FAO Schwartz has also completed the sale of 34 Right Start stores to Hancock Park Associates.   The sale had been held up for a few days while the bankruptcy judge reviewed the details, but it was eventually completed.

 

These new developments follow a long line of 'almosts' as FAO lost in the toy price wars with major chains (see 'Wal-Mart Applying Toy Category Kill Shot') and was forced to file Chapter 11 bankruptcy (see 'FAO Inc. Will File Chapter 11').  Then came the question of what would happen to the stores being liquidated, and who would step forward to buy them, if anyone (see 'Wall-Walker King Wants FAO'), as the court's deadline passed (see 'FAO Store Sales Past Deadline').