FAO Schwarz works to avoid bankruptcy

It’s been a rough year for 140-year-old FAO Schwarz Inc. The parent company of FAO Schwarz announced Monday it would close 70 underperforming stores by March, and is working with its lender to try to avoid bankruptcy. The company had said last week bankruptcy was likely if the bank did not relax borrowing restrictions.

FAO Inc., which also owns Zany Brainy and The Right Start, lost $23.6 million, or 66 cents a share, for the third quarter ended Nov. 2.

Analysts said the celebrated toy retailer just can’t compete with the likes of Wal-Mart, Target and other discount chains that carry many of the same toys at lower prices.

Above, a couple enter one of the company’s stores Monday in King of Prussia, Pa.

Venezuela: Economy struggles as strike continues

Venezuelans struggled to get cash and gasoline Tuesday as a general strike tightened its grip on this oil-rich nation’s economy, but opposition leaders vowed to continue the boycott until President Hugo Chavez steps down.

The 23-day boycott has stopped Venezuela’s oil exports, costing the state oil monopoly $1.3 billion so far and pushing world oil prices above $31 a barrel. Service stations closed down from lack of gasoline supply.

The government fired 90 striking oil managers Tuesday, boycott leader Juan Fernandez said.

Aviation: Boeing lands order from Taiwanese airline

Taiwan’s China Airlines Ltd. has placed the year’s largest order for Boeing jumbo jets, agreeing to buy 10 747-400s worth a total of $2 billion at list prices, Boeing Commercial Airplanes confirmed Tuesday.

China Airlines also placed orders with Europe’s Airbus for 12 airplanes and took options for six more.

Boeing’s deal is for six, 416-passenger 747-400s and four 747-400 freighters, with the first plane to be delivered in July. The airplanes were previously listed among Boeing’s orders for the year, but attributed to an unidentified customer.

Entertainment: U.S. investor to buy stake in Jim Henson Co.

German media company EM.TV said Tuesday it has signed a letter of intent to sell a U.S. investor group a 49.9 percent stake in the Jim Henson Co., creator of Kermit the Frog and the Muppets.

EM.TV, which bought the Jim Henson Co. and rights to the Muppets in February 2000 for $680 million in cash and stock, expects to finalize the deal next month. The investment group is led by former UPN president Dean Valentine and investment company Europlay Capital Advisors.