KidKraft, the brand known for wooden playsets and outdoor play structures, has filed voluntary petitions for Chapter 11 relief in the United States Bankruptcy Court for the Northern District of Texas. KidKraft made the value-maximizing move to effectuate its sale to Backyard Products, a company with several outdoor brands under its umbrella.
“Today’s announcement marks an important step forward for KidKraft that will position us to continue investing in our industry-leading products and delivering for our valued customers well into the future,” says Geoffrey Walker, President and CEO, KidKraft. “We are confident that with the strong support of new ownership, KidKraft will be on track to continue inspiring imaginative play experiences through our impressive range of high-quality products.”
This kind of filing is sometimes called “reorganizing bankruptcy.” Contingent on court approval, KidKraft will receive up to $10.5 million of new money debtor-in-possession financing from 1903 Partners, an affiliate of Gordon Brothers. This money, as well as the cash flow from its operations and other customary Chapter 11 filings, will be key to providing enough liquidity to continue manufacturing and distribution, as well as in paying employee wages and fulfilling benefits.
This reorganization will not include KidKraft’s operations in Europe, the Pacific, and Asia. For more information, visit the KidKraft and Backyard Products websites.
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