Another children’s company now files an unexpected bankruptcy as it looks to sell substantially all of its assets, the filing said.
KidKraft Inc., an industry leader in children’s imaginative toys and outdoor play products, and 10 affiliates on May 10 filed for a prepackaged Chapter 11 Bankruptcy in the U.S. Bankruptcy Court for the Northern District of Texas in Dallas, that calls for the debtor to sell substantially all of its assets to Backyard Products, the nation’s largest maker of backyard sheds and playsets.
The Dallas-based debtor, which is owned by MidOcean US Advisor, also filed for recognition proceedings under the Companies’ Creditors Arrangement Act in the Ontario Superior Court of Justice in Canada, according to its petition.
KidKraft operates four subsidiaries in Canada, which include Solowave Design Holdings Limited, Solowave Design LP, Solowave Design Inc. and Solowave International.
Privately held KidKraft is a leader in branded, sustainable wood-based active and imaginative play products in U.S., Canada, Europe and Asia, which include dollhouses, play sets, playhouses, swing sets and more.
The 56-year-old company distributes its products through partnerships with major global retailers and through direct-to-customer sales, with more than 3,000 points of distribution in over 90 countries.
KidKraft said in court papers that it faced significant headwinds in recent years that strained its liquidity and operations.
The company was not able to satisfy its funded debt obligations and sought a sale process, which resulted in its prepackaged Chapter 11 plan that includes a stand-alone Section 363 sale of its assets that is expected to preserve jobs and allow the KidKraft brand to continue as a going concern.
KidKraft listed $100 million to $500 million in assets and liabilities in its petition.
The debtor owed about $151.9 million in funded prepetition debt obligations, including $63.2 million owed on a first-lien revolving credit facility due in June 2024, $81.7 million owed on a first-lien term loan credit facility, $5 million owed on a subordinated unsecured note and $2 million in interest, according to court papers.
For more news and updates like this, opt-in for push notifications.
Also Read: An Unexpected Retailer Is Now Closing All Stores in Illinois
Other Economy News Today
A massive clothing retailer is now closing all 540 stores in just six weeks after unexpectedly filing for bankruptcy.
Liquidation sales will be held at rue21 outlets across the US as bosses rush to clear the last remaining stock.
The clothing retailer has entered bankruptcy and bosses have announced plans to close all 540 remaining stores within six weeks, reports The US Sun.
It is the third time in less than 25 years the fashion retailer has entered bankruptcy, per Bloomberg.
Court documents seen by Reuters revealed the company has more than $190 million of debt.
The chain has 540 stores across the US and 4,900 workers are set to be impacted.
Outlets are to slam shut within four to six weeks, according to court papers.
Bosses also announced plans to sell the company’s intellectual property.
The company narrowly avoided going into bankruptcy in October 2022.
Chiefs filed for bankruptcy in 2017 as they rushed to clear around $700 million worth of debt.
Bosses shuttered 400 stores as well and renegotiated leases.
Execs identified the rise of online shopping and changing consumer trends as reasons behind the bankruptcy.
Michele Pascoe, the interim CEO, also alluded to the impacts of competition and inflation.
The company also filed for bankruptcy in 2002.
At its peak, the company had more than 1,000 stores across the US.
The chain has dozens of outlets across several states, including Florida, Georgia, Illinois, North Carolina, Pennsylvania and Texas.
The teen fashion retailer is not the only clothing chain that has entered bankruptcy over the past year.
Last month, Express chiefs filed for bankruptcy, and at least 100 stores are set to close.
Also Read: Retirees Will Now Receive More Money For Social Security
Market News Published Daily 📰
Don’t forget to opt-in for push notifications so you don’t miss a single article!
Also, thank you to all of our blog sponsors.
This year we’ve been able to increase push notifications slots making it more convenient than ever for new readers to receive their daily market news and updates.
Scroll below to view my stock purchases this month!
You can also follow me on X (Twitter), Instagram, Facebook, or LinkedIn for daily news and updates on your favorite stories.
Frank Nez’s Stock Portfolio
Wondering which stocks Frank Nez is holding? Which stocks is Frank Nez buying?
Frank Nez is now sharing his exclusive and personal stock portfolio with readers, only on the Patreon.
11/16/2023 – Today I invested $1,000 in two different stocks for a brand new stock dividend portfolio I am creating for 2024.
Recommended For You ✨
About The Author
Leave your thoughts below.
For more news and updates like this, opt-in for push notifications.