NEW YORK (CNN/Money) - At least two large suppliers to FAO Schwarz have stopped shipping merchandise to the toy retailer because they haven't been paid, a newspaper reported Friday.

Jerry Welch, CEO of the company that owns FAO Schwarz, Zany Brainy and Right Start toy stores, declined comment to the Wall Street Journal on the matter, saying FAO Inc. is in a quiet period leading up to its third-quarter earnings report next Monday, the paper reported.

A spokeswoman was quoted as saying: "FAO Inc. has more than 350 suppliers, most of whom are happy to be suppliers" to the company.

One of the suppliers claims it hasn't been paid in six weeks, and both have cut off shipments during the most critical time of the year in the toy business, the newspaper said. Other suppliers are aware of FAO's cash difficulties but still are shipping and watching receivables closely, the Journal reported.

However, John Lee, president of FAO's biggest supplier, Chicago-based Learning Curve Inc., believes FAO is being treated unfairly, saying suppliers are jittery following Kmart Corp.'s bankruptcy filing in January, according to the report.

"I think it's an overreaction," Lee told the paper, adding that FAO is up to date on its payments to his company.

Two weeks ago, FAO warned it didn't expect to meet already reduced earnings and revenue guidance for the year, citing sluggish consumer spending and a weak economic environment.