WFCN —
A huge toy company that owes between $50 and $100 million has recently filed for painful Chapter 11 bankruptcy protection.
Strong brands in Basic Fun!’s portfolio include Uncle Milton, Mash’ems, Fisher Price Classics, Playhut, K’nex, Lincoln Logs, Care Bears, Tonka, and Littlest Pet Shop.
This is a toy company that has been around for a very long time.
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In addition to being a toy company, Basic Fun has other high-profile brand relationships.
According to their About Us website, “The company is proud to have valued licensing partnerships with Hasbro, Disney, Mattel, Nintendo, Netflix, Coca-Cola, Universal, Cloudco Entertainment, NFL, and NBA.”
“Leading retailers and distributors sell our iconic brands and extensive product portfolio in over 60 countries worldwide.”
“Basic Fun! has a multichannel marketing approach and is well-established online, in-store, and in family-friendly entertainment venues,” the business stated.
The corporation aims to bounce back relatively fast, having willingly filed for bankruptcy.
“Basic Fun is requesting approval for a $15 million subordinate facility to be provided by RBC and the company’s founders, Jay Foreman and John MacDonald, as well as $50 million in debtor-in-possession (DIP) financing from affiliates of Great Rock Capital.”
According to Toybook, “the company believes that the financing, once approved, will allow it to continue the normal operation of its business through restructuring proceedings.” The move follows years of unrest in the toy sector.
The CEO of the business, Jay Foreman, stated that Covid is a contributing factor to the issues his company is facing, which stem from the passing of Toys ‘R’ Us in 2018.
“By utilizing the restructuring process, we hope to overcome those obstacles and secure a prosperous future that will position us for expansion and value generation,” the speaker stated.
Basic Fun anticipates carrying on with business as usual following the filing; it does not anticipate any delays or modifications to its capacity to provide client service.
According to The Street, Basic Fun has between 200 and 299 creditors as of right now.
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