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 We wonder if toymaker Sababa Group Inc. shook up the Magic 8-ball that
it licenses a version of and asked it if its troubles would lead to
bankruptcy? Because if it didn't, it should have.
Sabada, which also owns licenses for versions of the card game UNO, the
board game Scrabble, and the Rubik's cube, filed for Chapter 11 in
Manhattan on Aug. 13, and will now sell its assets to Omni Commercial
LLC or a rival bidder at a Sept. 13 auction. (UNO and Scrabble are
licensed from Mattel Inc.) Through the sale, Omni plans to
make a credit bid -- apply what it's owed in the price it offers -- and
position itself as the stalking horse for Sabada's assets. While the
specific bid is not disclosed, Omni is owed $1.77 million, court
documents said. Once the sale is completed, Omni will
flip the company, minus its accounts receivables, in a follow-up
transaction to University Games Corp., for close to $2 million. Again,
the exact figure isn't disclosed in court filings. Manhattan-based
Sababa, which sells its toys through retailers such as KB Toys, Target,
Toys-R-Us and Wal-Mart, was forced to file for bankruptcy protection
after a liquidity crisis left it unable to pay its debts. The company
said it has been hurt by an accumulation of inactive inventory,
customer returns and its inability to lower its overhead costs in order
to survive the current market conditions. Will other bidders step forward and challenge Omni Commercial at auction, throwing its grand plan into disarray? CategoriesComments
From: b,,
i'd like to know the real reasons...can you provide a link?
Posted on:
August 25, 2008 3:13 PM
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Nice spell check.
You should look into the real reasons Sababa closed.