Right start growth plans show buyers aren't playing around.

THE Los Angeles private equity firm that bought toddler and infant toy chain Right Start out of FAO Inc.'s bankruptcy has plans to expand the concept by nearly 70 locations.

Brian McDermott, the partner at Hancock Park Associates who was installed as president of the 34-unit Right Start,

"We're going to spend the next several months transitioning the stores from the FAO system and get them standing on their own two feet," McDermott said. "That's the very first step."

Right Start's headquarters is being moved to Calabasas, where the company has a buying office. Though he didn't provide the number of employees that would be moved to Los Angeles, McDermott said several would be relocated and combined with current personnel.

While details of Hancock Park Associates' purchase have not been disclosed, the firm's earlier $6.2 million bid, made in FAO's initial bankruptcy filing, was rejected by the bankruptcy court.

Instead, Hancock Park joined a group of investors who bought $30 million in preferred FAO stock to help the company emerge from bankruptcy protection. But the retailer never regained its looting and was forced to declare bankruptcy and begin liquidating assets eight months later.

"Our initial interest was in Right Start," McDermott said. "There's a very good core business there, selling baby and juvenile products in a format that we think is prized by customers."

McDermott said Hancock Park would be able to turn Right Start around by focusing on the toddler market.

"We need to focus on differentiation--the problem with FAO is that they weren't able to get out of Wal-Mart's way fast enough," McDermott said. "You can't get from Wal-Mart, Target or Babies 'R' Us the types of products and services we provide. It's very important as a retailer these days that your customers can make that distinction."

McDermott said that once the chain is stabilized, the company plans to expand Right Start nationwide.

"We expect it to be a 75- to 100-unit chain in a three- to five-year time period," McDermott said. "It's a very strong concept."

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