As the LA Fall Toy Previews kick into high gear this week, there is good news to report from Basic Fun!
Last night, Basic Fun! CEO Jay Foreman got in touch to share an update on the company’s reorganization, which made headlines earlier this summer as the prepackaged effort was filed in bankruptcy court with a firm intention to “emerge quickly” from the process. Read the latest from Foreman below.
“I’m very pleased to report Basic Fun’s imminent emergence from our restructuring process. We’ve entered into a complete settlement with our private equity partner. We expect swift and final approval from the court in Delaware within 30 to 45 days. We have the full support of all our partners and lenders and a dynamic new capital plan that will enable us to continue to grow and look for new acquisition opportunities.
I’d like to stress that not one supplier, retailer, licensors or employee was negatively affected by the restructuring and it’s been business as usual along the way. That’s very different than say what happened in the case of Toys ‘R’ Us who went from a Chapter 11 [reorganization] process to a Chapter 7 liquidation, or companies like Delta Airlines and General Motors who emerged from Chapter 11 processes but left many employees and vendors suffering loses. It’s certainly no fun to go through this type of process as it’s stressful on all involved but sometimes you have to take a step back to take a step forward.
In fact, we’re taking several steps forward. We expect this year to be a record-setting sales year for the company, led by new introductions and our carry-forward brands. I remain the majority owner of the business and operating CEO, and our entire management team remains firmly in place. At Basic Fun!, we’ve got our heads down and are pushing forward to build value for our stakeholders and partners.
— Jay”
Other sources have echoed Foreman’s statements privately to The Toy Book in recent weeks, noting a rare circumstance where an unpleasant situation was handled with honor and care.
As the finish line for Basic Fun!’s reorganization approaches, the company is set up in the growing “El Segundo Toy District” for the ongoing LA Fall Toy Previews. For more of Foreman’s thoughts on this year’s preview season, check out his latest blog at Global Toy News.
