Juvenile furniture and accessories manufacturer Kid Brands files voluntary chapter 11, plans to sell all assets and at least one subsidiary; with US$49M in DIP financing, company says operations will continue normally until sale is completed
RUTHERFORD, New Jersey
June 19, 2014
– Company has Obtained Commitment for $49 Million in DIP Financing Intends to Operate Business in the Ordinary Course through Sale Process
Kid Brands, Inc. (OTCQB: KIDB) today announced that it plans to pursue a sale of substantially all of the assets of the Company, or one or more of its subsidiaries, facilitated through the filing of voluntary chapter 11 petitions in the United States Bankruptcy Court for the District of New Jersey.
As previously announced, Kid Brands had initiated a review of strategic and financing alternatives, including addressing under-performing product lines, exploring strategic alliances, the sale or merger of the Company or one or more of its subsidiaries, restructuring the Company’s current debt, a recapitalization, or other possible transactions. The Board of Directors ultimately determined that pursuing a sale under section 363 of the bankruptcy code through a chapter 11 filing is in the best interests of the Company and its stakeholders.
Kid Brands intends to operate its current business in the ordinary course during the chapter 11 process. To this end, the Company has secured commitments for $49 million in debtor-in- possession (“DIP”) financing from Salus Capital Partners, LLC and Sterling National Bank, the Company’s existing lenders, which, in addition to Kid Brands’ ongoing cash flow, will enable the Company to fund its financial obligations after the voluntary petitions are filed, subject to Bankruptcy Court approval.
Kid Brands has filed with the Bankruptcy Court a series of first day motions seeking authority to pay associates’ wages and benefits and otherwise manage its day-to-day operations as usual.
Kid Brands suppliers and customers can access additional information about the Company’s chapter 11 filing and sale process at www.omnimgt.com/KidBrands.
￼Kid Brands is advised in this transaction by PricewaterhouseCoopers LLP and Lowenstein Sandler LLP.
Kid Brands, Inc.
Kid Brands, Inc. and its subsidiaries are leaders in the design, development and distribution of infant and juvenile branded products. Its design-led products are primarily distributed through mass market, baby super stores, specialty, food, drug, independent and ecommerce retailers worldwide.
The Company’s current operating subsidiaries consist of: Kids Line, LLC; LaJobi, Inc.; Sassy, Inc.; and CoCaLo, Inc. Through these wholly-owned subsidiaries, the Company designs, manufactures (through third parties) and markets branded infant and juvenile products in a number of complementary categories including, among others: infant bedding and related nursery accessories and décor and nursery appliances (Kids Line® and CoCaLo®); developmental toys and feeding, bath and baby care items with features that address the various stages of an infant’s early years, as well as a line of infant gear products (Sassy®); and mattresses and related products (LaJobi®). In addition to the Company’s branded products, the Company also markets certain categories of products under various licenses. Additional information about the Company is available at kidbrands.com.