FAO Schwarz mulls sale

Toy-store operator FAO Inc. said Monday it was trying to resolve issues that caused its lenders to deliver a notice of default but couldn’t guarantee that it would be able to negotiate better loan terms.

The default notice said lenders no longer considered themselves obligated to give FAO — owner of FAO Schwarz toy stores, The Right Start and Zany Brainy stores — further loans or letters of credit, the company said.

Shares in FAO plunged 56 cents, or 32 percent, to close at $1.17 on the Nasdaq Stock Market. The King of Prussia, Pa.-based company, which emerged from bankruptcy just over six months ago, said Friday it was exploring a sale of the company.

Banking

Cap Fed issues dividend

Topeka-based Capitol Federal Financial announced Monday that it would pay a year-end cash dividend of 81 cents per share. The dividend is payable Dec. 5 to shareholders of record as of Nov. 21.

Leadership

Lawrence resident lands chamber position in N.C.

A Lawrence resident has been named a leader of the Fayetteville, N.C., Chamber of Commerce.

Tim Holverson, a former vice president of public policy for the Lawrence Chamber of Commerce, has been named as the organization’s executive vice president.

Holverson, who left the Lawrence chamber in January, had been working as the director of governmental affairs for the Kansas City Regional Association of Realtors.

Holverson will be reporting to Bill Martin, a former director of economic development in Lawrence. Martin is the president of the Fayetteville area business council, which oversees the chamber.

Meatpacking

Tyson earnings soar

Tyson Foods Inc., the world’s largest meat company, said fourth-quarter earnings rose 75 percent despite lower sales as the company reaped the benefits of changes to operations and products.

The company posted earnings Monday of $147 million, or 42 cents per share, for the three months ended Sept. 27, up from $84 million, or 24 cents per share, a year ago.