The Parent Company Files for Bankruptcy in Delaware

The Parent Company (formerly known as BabyUniverse, Inc.) filed for bankruptcy protection on Sunday in the United States Bankruptcy Court for the District of Delaware.  The company’s nine affiliates, all headquartered in Denver, Colorado, also filed for bankruptcy protection in Delaware and the lead case is eToys Direct 1, LLC (likely because it is a Delaware limited liability company – which qualifies it to file for bankruptcy in Delaware - while The Parent Company is a Colorado corporation). 

The company describes itself as “a leading commerce, content, and new media company for growing families.”  The company sells various products using seven eCommerce websites, such as toys (through eToys.com and KBToys.com), personalized dolls (through myTwinn.com), and baby, toddler and maternity products (through BabyUniverse.com, DreamtimeBaby.com, PoshTots.com, and PoshLiving.com).  It also operates three eContent websites (BabyTV.com, PoshCravings.com, and ePregnancy.com).  In total, the company offers 35,000 products from 500 manufacturers for sale and its websites generate 59 million annual visits and sales to 5.9 million unique customers. 

The company is the product of a number of acquistions since its founding in 1997, including the acquistion of the online assets of KB Toys in 2004 (note that KB Toys, Inc. filed for bankruptcy on December 11, 2008 and is liquidating its remaining stores) and a merger with eToys Direct, Inc. in 2007 (note also that eToys, Inc., once one of the most highly-publicized online retailers, filed for bankruptcy in March 2001).  While the company’s most recent quarterly financial filing with the SEC reported assets of approximately $96 million, the company reported consolidated assets of only $21 million in its bankruptcy filing.  While this is not directly explained in the filing, it appears likely that this may be explained by a subsequent write-down of the $69 million in goodwill and intangible assets that were listed on the company’s balance sheet as of the earlier SEC filing (August 2, 2008). 

Download copies of every document filed in The Parent Company bankruptcy case, as well as the bankruptcy cases of KB Toys, Inc., eToys, Inc. and over 420 other major corporate bankruptcies, using netDockets.  Sign up now for a free trial account.