New York real-estate investment firm Macklowe Properties Inc. is a leading contender to buy portions of bankrupt toy retailer FAO Schwarz, including the company's Las Vegas and Manhattan stores, the Wall Street Journal reported today.
The creditors committee of FAO Inc. on Wednesday approved Macklowe's $23 million proposal to buy the two stores as well as the rights to the FAO name, the Journal reported.
Under the plan, the remaining 13 FAO Schwarz stores would most likely close. Another unidentified investment firm has continued to seek the assets, and could yet prevail. The creditors committee is expected to submit a proposal to the U.S. Bankruptcy Court in Worcester, Mass., the Journal reported.
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