FAO Posts Loss After Closing Stores

FAO Inc., owner of the FAO Schwarz and Zany Brainy chains, had a fiscal second-quarter loss of $18.8 million after it closed 111 locations in a reorganization.

The net loss was $4.05 a share, FAO said. The King of Prussia, Pa., company, which exited Chapter 11 protection and sold convertible preferred stock in April, lost $18.2 million, or $8.01, a year earlier.

Sales in the three months ended Aug. 2 fell by almost half to $46.3 million from $90 million a year earlier.

Shares of FAO dropped 32 cents to $3.30 on Nasdaq.