NEW YORK (HedgeWorld.com)–VGACS Acquisition Inc., a unit of statistical arbitrage hedge fund D.E. Shaw & Co. LP, agreed to buy FAO Inc.’s FAO Schwarz stores in New York and Las Vegas, its catalog and Internet business and other assets for US$20 million.
The deal will keep the flagship Fifth Avenue toy store in New York and the Forum Shops store at Caesar’s Palace in Las Vegas open, although FAO Inc. officials said in a statement that both stores would close temporarily for remodeling after the remaining inventory is sold.
The New York and Las Vegas stores should reopen before summer, FAO Inc. officials said in a statement.