FAO Inc., owner of the FAO Schwarz and Zany Brainy toy store chains, was notified that its stock will be delisted by the Nasdaq National Market because the retailer filed for bankruptcy protection.
A review of Nasdaq's decision has been requested, FAO said in a statement Tuesday. FAO, founded 141 years ago, filed for Chapter 11 bankruptcy protection this month after failing to get easier terms from creditors.
FAO plans to close 75 to 80 stores, or almost a third of its outlets. The company had lost money for eight years. The Zany Brainy chain was hurt by competition for educational toys from discounters such as Wal-Mart Stores Inc., analysts said.
Shares of King of Prussia, Pa.-based FAO fell 4 cents to 26 cents on Nasdaq Tuesday. The company has said it plans to emerge from bankruptcy protection by the second quarter.
In another Nasdaq delisting case, San Jose-based Redback Networks said it will appeal a Nasdaq determination that its shares should be kicked off because they haven't met minimum price requirements.
If the appeal is unsuccessful, Redback said, it will apply for transfer to Nasdaq's Small Cap market.
The company, which makes broadband equipment for telecommunications companies and Internet service providers, has been slammed by the telecom sector's crash.
The stock, which traded as high as $198 in 2000, closed at 79 cents, down 3 cents, on Tuesday.