Kid Brands gives details of $1.35 million and $14 million unit sales

By Caroline Salls

Pittsburgh, July 30 – Kid Brands, Inc. provided more details about the proposed sales of the assets of its Kids Line, LLC and CoCaLo, Inc. subsidiaries and its Sassy, Inc. subsidiary, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

As previously reported, Kid Brands is seeking court approval to sell the Kids Line and CoCaLo assets to Crown Crafts Infant Products, Inc. for $1.35 million and to sell the Sassy assets to Sassy 14, LLC for $14 million.

According to the 8-K, the assets to be purchased by Crown Crafts include trademarks, internet domain names and related intangible assets, including the Kids Line and CoCaLo brand names.

The assets to be purchased by Sassy 14 include some assets of Sassy and other assets of affiliates of Sassy used primarily in the operation of it business of designing, importing, marketing and distributing branded infant and juvenile products, including developmental toys and feeding, bath and baby care items.

The company said the Sassy agreement specifically provides for cash consideration equal to the sum of $14 million, specified monetary amounts related to the assumption and/or assignment of assumed agreements, employee costs and deposits or other payments related to manufacturing orders made by the seller after execution of the purchase agreement and before closing.

The Sassy agreement is also subject to a potential purchase price adjustment based on its working capital as of the closing date, plus the assumption of agreements and other obligations.

The Sassy agreement requires the buyer to deliver a $1 million cash deposit to be held in escrow.

Also under the Sassy agreement, the parties entered into a transition services agreement that runs though Dec. 31.

The parties to the transition agreement each agreed to provide services necessary for the operation of the Sassy business and the continued operation in bankruptcy of the remaining business of Kid Brands and its affiliates.

Both sales are subject to bankruptcy court approval.

Kid Brands, an East Rutherford, N.J.-based designer, importer, marketer and distributor of infant and juvenile consumer products, filed for bankruptcy June 18 in the U.S. Bankruptcy Court for the District of New Jersey. The Chapter 11 case number is 14-22582.

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