Calabasas, Calif. — The Right Start Inc. completed its purchase of certain assets of FAO Schwarz including its flagship Fifth Avenue store, 22 other stores across the United States, Internet and catalog operations and rights to the FAO Schwarz name.
As part of the transaction, The Right Start agreed to issue its preferred stock convertible into 5 million shares of its common stock and an $18 million, four-year note, to assume certain liabilities.
The Right Start is also changing its corporate name to FAO Inc. The company will continue to operate its fleet of 260 stores in separate operating divisions under the trade names of Right Start, Zany Brainy and FAO Schwarz. Fred Kayne, chairman of Big Dog Holdings Inc. and CEO of Fortune Fashions Industries LLC, will was appointed chairman of the board for FAO Inc.
-- Staff and wire reports