KIDBQ Kid Brands Inc (CE)

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): September 16, 2014

 

 

KID BRANDS, INC.

(Exact Name of Registrant as Specified in Charter)

 

 

 

New Jersey		1-8681		22-1815337
(State or Other Jurisdiction of Incorporation)		(Commission File Number)		(IRS Employer Identification No.)

 

301 Route 17 North, 6th Floor Rutherford, New Jersey		07070
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s telephone number, including area code: (201) 405-2400

(Former Name or Former Address, if Changed Since Last Report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

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Section 8. Other Events

 

Item 8.01

Other Events.

As previously disclosed, on June 18, 2014, Kid Brands, Inc. (the “Company”) and certain of its U.S. subsidiaries (collectively with the Company, the “Debtors”) each filed a voluntary petition for relief (the “Bankruptcy Filing”) under chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the District of New Jersey (the “Bankruptcy Court”). On September 16, 2014, the Debtors filed its monthly operating report with the Bankruptcy Court for the reporting period of July 1, 2014 through July 31, 2014. Pertinent financial information from the July 2014 monthly operating report is furnished with this Current Report on Form 8-K as Exhibit 99.1.

The monthly operating report contains unaudited financial information which has not been reviewed by independent accountants, is limited to the Debtors and is in a format prescribed by applicable bankruptcy laws. The financial information related to the Debtors included in the monthly operating report has been prepared to conform with specific instructions from the U.S. Trustee and is not presented in accordance with generally accepted accounting principles (“GAAP”) or SEC regulations applicable to financial statements contained in periodic reports filed with the SEC. Preparation of the Debtor’s financial statements in accordance with GAAP could result in material reconciliations and adjustments to certain financial information presented in the monthly operating reports.

The monthly operating report also contains information for periods that are different from those contained in the reports the Company has filed pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such information also may not be indicative of the financial condition or operating results of the Debtors for the periods reflected in the Debtors’ financial statements or in its reports pursuant to the Exchange Act, or of future results. The financial information in the monthly operating report is not presented on a consolidated basis and does not present the consolidated results of the Debtors. Accordingly, the financial statements in the monthly operating reports cannot be compared with the consolidated financial condition and results of operations that the Company has reported in its Exchange Act filings.

Section 9. Financial Statements and Exhibits

 

Item 9.01

Financial Statements and Exhibits

(d) Exhibits.

 

99.1		Operating results for the period from July 1, 2014 through July 31, 2014.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: September 22, 2014				KID BRANDS, INC.
				By:		/s/ Kerry Carr
						Kerry Carr
						Executive Vice President, Chief Operating Officer and Chief Financial Officer

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Exhibit Index

 

99.1		Operating results for the period from July 1, 2014 through July 31, 2014.

Exhibit 99.1

 

In Re: Kid Brands, Inc. et al.				Case No. 14-22582
Debtors

SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

For the Period July 1, 2014 through July 31, 2014

 

		Kid Brands, Inc.
RECEIPTS
CASH RECEIPTS		$	100,000.00
TOTAL RECEIPTS		$	100,000.00
DISBURSEMENTS
OPERATING DISBURSEMENTS
PAYROLL & EMPLOYEE EXPENSE REIMBURSEMENTS			302,683.97
EMPLOYEE MEDICAL			133,756.38
DISTRIBUTION & FREIGHT			449,577.05
INVENTORY PURCHASES
RENT			5,461.31
INSURANCE			152,788.15
ADMINISTRATIVE & OTHER OPERATING			54,452.87
TOTAL OPERATING DISBURSEMENTS			1,098,719.73
NON-OPERATING DISBURSEMENTS
LOAN PAYDOWN, INTEREST AND FEES			179,709.74
PROFESSIONAL FEES			904,975.32
DEPOSITS			27,000.00
U.S. TRUSTEE FEES
TOTAL NON-OPERATING DISBURSEMENTS			1,111,685.06
TOTAL DISBURSEMENTS			2,210,404.79
NET CASH FLOW		$	(2,110,404.79	)

 

THE FOLLOWING SECTION MUST BE COMPLETED
DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MONTH ACTUAL COLUMN)
TOTAL DISBURSEMENTS			2,210,404.79
LESS: TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS
PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES
TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES			2,210,404.79

 

1	This consolidated statement of cash receipts and disbursements has been presented in a manner consistent with the Debtors’ external financial reporting and would be unduly burdensome to produce in a different or modified format.

FORM MOR-1

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In Re: Kid Brands, Inc. et al.				Case No. 14-22582
Debtors

 

STATEMENT OF OPERATIONS

For the Period July 1, 2014 through July 31, 2014

The Statement of Operations is to be prepared on an accrual basis. The accrual basis of accounting recognizes revenue when it is realized and expenses when they are incurred, regardless of when cash is actually received or paid.

 

		Kid Brands, Inc.
REVENUES
Net Revenue
Cost of Goods Sold
Gross Profit			—
OPERATING EXPENSES
Direct Selling
Sales Support
Shipping			345,029
Administrative			476,359
MIS			36,650
Legal			63,654
Design and Product Development
Other
Intercompany
Total Operating Expenses			921,692
Net Profit (Loss) Before Other Income & Expenses			(921,692	)
OTHER INCOME AND EXPENSES
Interest Expense2
Net Profit (Loss) Before Reorganization Items			(921,692	)
Income Taxes
Net Profit (Loss)			(921,692	)

 

1	This consolidated statement of cash receipts and disbursements has been presented in a manner consistent with the Debtors’ external financial reporting and would be unduly burdensome to produce in a different or modified format.

 

FORM MOR-2

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In Re: Kid Brands, Inc. et al.				Case No. 14-22582
Debtors

 

BALANCE SHEET

For the Period Ended July 31, 2014

The Balance Sheet is to be completed on an accrual basis only. Pre-petition liabilities must be classified separately from postpetition obligations.

 

		Consolidated
ASSETS
CURRENT ASSETS
Unrestricted Cash and Equivalents			449,719
Restricted Cash			898,327
Accounts Receivable (Net)			12,921,370
Notes Receivable			150,000
Inventories (Net)			19,644,470
Income Taxes Receivable			4,913
Prepaid Expenses and Other Current Assets			5,979,490
TOTAL CURRENT ASSETS			40,048,289
PROPERTY AND EQUIPMENT
Fixed Assets			7,854,356
Less Accumulated Depreciation			(4,631,908	)
TOTAL PROPERTY & EQUIPMENT			3,222,448
OTHER ASSETS
Intangibles			8,862,529
Notes Receivable, Long-term			209,850
Other Assets			288,149
TOTAL OTHER ASSETS			9,360,528
TOTAL ASSETS			52,631,265

 

		Kid Brands, Inc.
LIABILITIES AND OWNER EQUITY
LIABILITIES NOT SUBJECT TO COMPROMISE (Postpetition)
DIP Financing			35,879,256
Accounts Payable			1,020,395
Taxes Payable			211,004
Accrued expenses			667,650
TOTAL POSTPETITION LIABILITIES			37,778,305
LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition)
Accounts Payable			24,790,674
Taxes Payable			453,858
Accrued expenses			26,054,073
Deferred Rent-leases			1,867,680
TOTAL PRE-PETITION LIABILITIES			53,166,285
TOTAL LIABILITIES			90,944,590
SHAREHOLDER EQUITY
NET SHAREHOLDER EQUITY			(38,313,325	)
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY			52,631,265

 

1	Includes the assets and liabilities of the Company’s foreign entities that are not part of the bankruptcy filing.

 

FORM MOR-3