The company has signed an Asset Purchase Agreement with Ja-Ru, Inc.
A letter sent out to its customers reads:
“Dear valued Imperial Toy customer,
We are writing today with an important update about our company. As you know, over the last few years, we have all faced significant business challenges that have led to our Company’s inability to meet its debt obligations. After careful consideration of all available options, we have taken the positive and strategic next step by signing an Asset Purchase Agreement with Ja-Ru, Inc. to purchase the Company’s assets.
Ja-Ru is a leader in the toy space who is committed to our vision and will be a great partner. We are confident that this decision will make us financially stronger, more competitive, and enable us to preserve the 50-year legacy of Imperial Toy. To facilitate the sale, Imperial Toy has initiated proceedings under chapter 11 of the United States Bankruptcy Code. The use of chapter 11 to facilitate a sale is quite common and allows for a swift and efficient process. We believe that taking decisive action today will allow us to reorganise to become financially stronger and more competitive. So you are aware, while our operations in Mexico are part of the acquisition, they are not included in the chapter 11 proceedings in the United States.
What does this mean for you?
First and foremost, our day-to-day operations will continue uninterrupted and without disruption to customer service. Frankly, you likely won’t even know this is going on in the background.
We have secured ample liquidity having received a financing commitment to support operations during the sale process.
We will continue to keep you informed as we move through this process and have created the attached FAQ, which we hope will address your inquiries. We greatly appreciate your business and want to thank you for your continued support during this time.
CEO, Imperial Toy”