Rutherford-based Kids Brands Inc., an infant and child product developer and distributor, announced Thursday that it has filed for bankruptcy protection and is planning to sell all of the assets of the company, or at least one or more of its subsidiaries.
The company previously announced it had an initial review of its financing options. In turn, its board of directors decided that the company’s best interest was to pursue a sale under section 363 of the bankruptcy code with a voluntary chapter 11 petition.
Kids Brands intends to operate its business during the course of the filing. To this end, it has secured commitments for $49 million in debtor-in-possession financing from Salus Capital Partners LLC and Sterling National Bank.
ALSO ON NJBIZ: