Is it open or not? One of my guidebooks (a little outdated- from 2004) said that it was closing and then I remembered hearing something about that but then I also thought that I just read the Trumps had a baby shower there or something. Did it reopen?

Yes, they are still open. Some friends of mine went there just last week.

I believe the company is in bankruptcy, but the store is open during this procedure.

Still there
http://www.fao.com (look under "stores")
By the way it's FAO Schwarz

IF you mean NY, yes, the store has reopened.

It is open. I have not heard the new owner is in bankruptcy. The old company did file bankruptcy which resulted in the sale of three locations.

The store was closed for some time while they remodeled.

Personally, I don't think the new store comes remotely close to look or feel of the old store. The merchandise isn't that spectacular.

If you're going with kids, the Toys R Us in Times Square is significantly better. More crowded these days, but I'd say there is a reason for that.

FAO reopened it was closed because the company went bankrupt it was then bought by another company which is not bankrupt. It is open and renavated, their are only two stores though one in NY and in las vegas