Many of those in our industry might be seeing the news about an event taking place around Basic Fun. Like some old houses some are for knocking down and some have great bones and just need a new roof and some paint. Basic Fun has great bones! We have a solid foundation and we have the means to fix our roof and put a new coat of paint on the walls not to mention a new game room! We have great people and amazing licensing and vendor partners who are standing with us as we are poised to have an amazing year led by Littlest Pet Shop and anchor classic lines like Care Bears, Tonka and Lite Brite.
As you can imagine for someone who has had a lot of success in this business over many years having to admit you need to take a step back to take a step forward is humbling for sure. To be honest this business has been humbling many of us from the biggest to the smallest and many like us in between. TRU going down, Covid and the supply chain brought many to the brink and some beyond and some recognized when they need a little help and some adjusting. Basic Fun was in need of a little adjusting and that is why we initiated a restructuring on Friday. The fact that this process is done through a bankruptcy court is unfortunate when you are not bankrupt and we are not. We are solvent, capitalizes and open for business.
Anyone that does business with me and with our company know we are as hard working and dedicated as any in the industry. We tell it like it is, are fast to market, creative and deliver great product at a great value and we will continue undaunted and uninterrupted. Many of my friends and colleagues in the business have checked in to see how I’m doing and how the company is doing and I very much appreciate that and thank you. I’m fine and we’re fine. I try to always do the right thing, treat people well and dedicate myself to my company, partners and this industry. That’s my brand and the support I’ve been getting is testimony to doing the right thing.
As I said we are not skipping a beat, have fresh capital to deliver our year, to grow and even to find a new businesses to acquire if we find a good fit. I’ll keep those that follow my blog posted on how things are going. I can assure anyone that cares or is interested that this will be not just a good story and outcome but a great one. Watch this space!
Jay
Editor’s Note: Basic Fun! filed for Chapter 11 Bankruptcy protection on June 28, in a move the company called. a “strategic action to significantly strengthen its financial structure and position the company for future success.” The company seeks approval of $50 million in debtor-in-possession (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 move comes following years of toy industry turmoil, and the company believes that the financing, once approved, will allow it to continue the normal operation of its business through restructuring proceedings.
