Significantly Strengthened Financial Position, Poised for Continued Growth
Basic Fun, Inc., announced on Friday that that it has successfully completed its financial restructuring and has emerged from the process well-positioned for the future.
As a result of its restructuring, Basic Fun has substantially strengthened its capital structure by enhancing its liquidity, securing new capital to fund growth, and allowing the Company to invest in even greater promotional initiatives and an expanding product portfolio globally.
Management is pleased to have exited this process quickly and efficiently and looks forward to the bright future that lies ahead for Basic Fun. Under the Company’s restructuring plan, which was approved by the District Court of Delaware, Basic Fun has secured and retained $65 million in new and existing financing from its lending partners and founders.
The company is now on the strongest financial footing in its history with sales forecasted to be up over 30 percent year-over-year and profits at record levels driven by its exciting portfolio of products. Ownership is proud that throughout the process, Basic Fun has and will continue to meet every financial obligation it was and is responsible for, and the business continues operating seamlessly without disruption or interruption.
“I am incredibly appreciative of the tremendous efforts made by our team to get us to where we are today,” said Jay Foreman, Founder/CEO of Basic Fun and the company’s largest shareholder, in a prepared statement. “I also sincerely thank our customers, licensors, suppliers and partners in the 60+ countries where we operate for their unwavering support, which was instrumental in achieving today’s positive and successful outcome. Our team looks forward to continuing to work with our partners around the world building our businesses and continuing to bring our iconic, innovative and renowned brands to millions of consumers globally.”
In earlier conversations with Global Toy News, Foreman had laid out the strategy for restructuring now complete, which he said would help the company respond effectively and successfully to the changing toy business. The company is currently experiencing strong performance from several lines including Littlest Pet Shop, Lite Brite, and Tonka, all licensed from Hasbro.
