NEWS

Rubie’s files for Chapter 11 bankruptcy in the US

Published on: 1st May 2020

The costume & party company has filed the motion in New York.

According to a report in The Toy Book, costume and party supplier Rubie’s Costume Company has filed a voluntary petition under Chapter 11 of the US Bankruptcy Code, under which it hopes to facilitate financial restructuring.

Numerous lines in Rubie’s portfolio have been impacted by movie postponements, including Ghostbusters: Afterlife, Top Gun: Maverick,  Minions: The Rise of Gru and a trio of Marvel movies, Falcon and the Winter Soldier, Eternals and Black Widow.

Rubie’s president Marc Beige commented: “Given the highly seasonal nature of our business, our manufacturing relationships in China, the impact of the Covid-19 pandemic on the US and the global economy and potential liquidity pressures, the Board of Directors determined that the Chapter 11 filing is our best path forward as we carry out our restructuring efforts. We believe that this decision will best serve our customers, licensors, employees, and business partners.”

As had been recently reported in the US, Rubie’s had already cut 75% of its workforce, after its California and New York-based facilities were deemed non-essential as 26th March. The company subsequently pivoted its manufacturing facilities to produce hand sanitser and personal protective equipment to aid in the fight against Covid-19.

The company has asserted that it “plans to use cash collateral and is engaged in the process to place a new financing facility, along with the continued support of the Beige family, that will provide for the continuation of its operations, including payments to vendors, employees, customers, and creditors.”

Toy World understands that this filing does not affect the international divisions of Rubie’s, which are separate and self-financing operations.

RECENT ARTICLES

Friday Blog

Supply and demand… it’s the Friday Blog!

Toytown set to open largest store yet at Intu Merry Hill

Spin Master reports strong Q1 sales growth

T-Racers from Magic Box in pole position for success

Exclusive: Letter from America – licensing for indies

Tonies announces pop-up at Harrods department store

Exclusive: The kids are alright – KidsKnowBest

Eaglemoss enters Advent Calendars market with licensed range

PlayMonster welcomes Hollie Holmes as global head of Licensing

Could container challenges remain to the end of the year?