BOCA RATON, Fla., June 28, 2024 /PRNewswire/ -- Basic Fun, Inc.
("Basic Fun" or the "Company"), an industry leader in the design,
development and marketing of branded toys and imaginative play
products to the retail and family entertainment channels, today
announced that it, together with certain affiliated entities, has
commenced a case in the District of Delaware. As part of the first day filings,
the Company is seeking approval of $50
million in DIP financing from affiliates of Great Rock
Capital, as well as a $15 million
subordinate facility to be provided by RBC and the Company's
founders, Jay Foreman and
John MacDonald. The financing, once
approved, will provide ample liquidity for the on-going
operation of the business through the course of the restructuring
proceedings, including continued ability to purchase and sell
inventory, and support our key licensing, retail and
vendor partners. Basic Fun intends to put forward a
comprehensive restructuring plan which will allow it to emerge from
the court-supervised process quickly and effectively.
According to the Company's President, Craig Leaf, "As a result of the restructuring
process, our partners will be even more secure and confident in
their relationship with the Company moving forward as a
well-balanced capital structure will ensure the health of our
Company for the long-term. This process will facilitate Basic
Fun continuing to bring its new and innovative portfolio of
products to the marketplace. We appreciate the continued
support of our team members and our industry partners as we embark
on this next chapter."
Frank McMahon, Chief Financial
Officer, said, "With the financing we will obtain in the process
our vendors, licensors and customers should be assured in their
ability to continue to confidently partner with us. Basic Fun will
move forward with a strengthened financial foundation, allowing us
to invest in an even greater product and promotional experience for
our best-in-class merchandise assortments globally."
Jay Foreman, Basic Fun's CEO and
majority shareholder added, "Since the demise of our industry's
largest toy retailer Toys R Us in 2018, through the tumult of the
trade wars with China in 2019,
Covid in 2020 through 2021, the travails of the supply chain crisis
in 2022, inventory overstocks in 2023, and consumer slowdown in the
early part of 2024, our industry and Basic Fun have been through a
gauntlet of challenges. We intend to use the restructuring process
to put those challenges in the rear-view mirror, enabling us to
secure a successful future and position us for growth and value
creation."
Company Advisors
Polsinelli PC is serving as legal counsel and Oppenheimer &
Co. Inc. is serving as financial advisor.
About Basic Fun, Inc.
Basic Fun! is a dynamic global designer and marketer of classic,
innovative children's entertainment products which strive to bring
smiles to people of all ages. The Company has renowned iconic
brands and a broad product portfolio that are sold by over 2,500
leading retailers, distributors and family entertainment venues in
over 60 countries worldwide. Basic Fun! is dedicated to enriching
lives and creating unforgettable moments through imaginative play.
Basic Fun's global headquarters is located in Boca Raton, FL.
For more information visit basicfun.com.
Media Contact:
Jen Derevensky
Ren Beanie Public Relations
305-788-6878
Jen@RenBeanie.com
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SOURCE Basic Fun, Inc.