Basic Fun! has filed for Chapter 11 bankruptcy protection in the district of Delaware and is taking action to restructure its business for future growth opportunities. 

Founded in 2008, the Florida-based toyco is best known for its licensed range of consumer products, including Care Bears plush, Tonka vehicles and Littlest Pet Shop collectibles, which it distributes to more than 60 countries worldwide. In addition to its core business, the filing also encompasses its owned entities TGS Acquisition and K’NEX UK. 

The private company has been navigating a gauntlet of difficult challenges in the volatile toy market for several years, leading to the current situation, says CEO Jay Foreman. These include the demise of Toys “R” Us, supply chain disruptions brought on by the pandemic and the recent consumer slowdown.

To stay afloat, the company is seeking US$50 million in DIP financing from Great Rock Capital and an additional US$15 million credit agreement with the RBC and company founders Foreman and John MacDonald. Once approved, the funds will be allocated to maintaining the toyco’s core business operations, selling inventory and supporting its key licensing and retail partners. 

Basic Fun! has appointed Polsinelli’s Park City office as its legal counsel, while New York-based Oppenheimer & Co. will serve as its financial advisor.