Motion for Case Conversion or Dismissal Filed by US Trustee for Kid Brands, Inc.
September 21, 2017 at 12:00 am
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United States Trustee filed a motion in the US Bankruptcy Court for Converting the Case to Chapter 7 or, in the alternative, dismissing the case of Kid Brands, Inc. on September 21, 2017. The motion was filed as Debtors have failed to timely file monthly operating reports and as of the filing of this Motion, no disclosure statement or plan of reorganization has been filed. Upon the events of these cases, the Debtors’ assets have been sold, and operations have ceased. These cases have continued over a protracted period of time, and have failed to present an exit strategy from bankruptcy. Such circumstances present a substantial or continuing loss to or diminution of the estates and the absence of a reasonable likelihood of rehabilitation.
Kid Brands, Inc. (Kid Brands) is engaged in the design, development and distribution of infant and juvenile consumer products. The Company operates in one segment: the infant and juvenile business. The Company, through its wholly owned operating subsidiaries: Kids Line, LLC (Kids Line); LaJobi, Inc. (LaJobi); Sassy, Inc. (Sassy), and CoCaLo, Inc. (CoCaLo), designs and markets products in a number of categories including, infant bedding and related nursery accessories and decor, nursery appliances, diaper bags, and bath/spa products (Kids Line and CoCaLo); nursery furniture and related products (LaJobi); and developmental toys and feeding products, and bath and baby care items with features that address the various stages of an infantâs early years, including the Kokopax line of baby gear products (Sassy).