FAO, Inc. has issued a statement responding to a negative story in Friday's New York Post (see 'FAO Needs a Big Holiday Season'), stating that, 'It is not experiencing a cash crunch.' In addition, the company indicates that it is receiving increasing amounts of trade credit from its suppliers, and its stock levels are at the highest levels of the year, giving it plenty of inventory for the holiday season. FAO was able to increase its borrowings because of Letters of Credit collateralized by preferred shareholders.
No Worries
Posted by ICv2 on October 20, 2003 @ 11:00 pm CT