Iconic toy company founded in 1946 at risk as owner files for bankruptcy - blaming demise of Toys R Us

A artifact institution down favourite brands including Tonka, K'nex, and Care Bears has revenge for bankruptcy.

Basic Fun besides owns Playhut, Fisher Price Classics, Lite Brite and Lincoln Logs, and makes toys for Walmart, Target and amusement parks. 

Tonka - celebrated for its rugged artifact trucks - was founded successful 1946 and celebrated its 75th day 2 years agone pinch Shaquille O'Neal. 

Meanwhile, Care Bears were 1 of nan biggest toys of nan 1980s aft being launched astatine nan commencement of that decade. 

It besides has licensing deals pinch Disney, Mattel, Nintendo and Coca-Cola. 

Bosses said a cardinal facet was nan bankruptcy of different institution - retailer Toys R Us. The 2018 demise of nan artifact store, nan biggest successful America, trim disconnected 1 of its main ways of trading items. 

They besides blamed Covid and proviso concatenation issues pursuing nan pandemic for moving up losses.

Basic Fun will proceed operating arsenic it bids to restructure nether Chapter 11 protection, aft filing its lawsuit successful nan District of Delaware connected June 28. 

Basic Fun was only founded successful 2009 by Jay Foreman, but since past it has bought older, storied brands aliases licensed iconic toys.

It past makes nan toys, markets them and sells past via stores and online.  

Foreman explained really a drawstring of problems has mounted up - but that nan institution plans to 'put those challenges successful nan rear-view mirror' arsenic it bids to 'secure a successful future.'

He said: 'Since nan demise of our industry's largest artifact retailer Toys R Us successful 2018, done nan tumult of nan waste and acquisition wars pinch China successful 2019, Covid successful 2020 done 2021, nan travails of nan proviso concatenation situation successful 2022, inventory overstocks successful 2023, and user slowdown successful nan early portion of 2024, our manufacture and Basic Fun person been done a gauntlet of challenges.'

When Toys R Us went under, it was providing $35 cardinal a twelvemonth successful income for Basic Fun. The artifact concatenation owed $6 cardinal astatine nan time, and only $1 cardinal was collected. 

Although Toys R Us reopened, it was nether caller guidance and arsenic a overmuch smaller retailer.

With Basic Fun besides making toys for amusement parks, it was severely deed erstwhile Covid unopen these down successful 2020 and into 2021.

Basic Fun will inquire nan bankruptcy tribunal for support for caller slope finance. Founders - Foreman and John MacDonald - will besides supply up to $5 cardinal successful loans.

With that, it says it tin enactment successful business.

In 2019, Basic Fun acquired Tonka - its champion known marque - from Hasbro, which had owned it since 1991. 

Tonka, primitively based successful Mound, a suburb westbound of Minneapolis, began successful 1946 arsenic Mound Metalcraft.

Founders Al Tesch, Avery Crounse, and Lynn Baker created nan business to nutrient metallic items for illustration necktie racks and farming tools.

In 1947, Mound Metalcraft began making metallic toys and rebranded nan twelvemonth aft arsenic Tonka Toys, named aft adjacent Lake Minnetonka.

By 1968, Tonka had moved it HQ from Mound to offices conscionable westbound of Minneapolis.

Between 1974 and 1975, nan institution achieved $102 cardinal successful yearly income and expanded to factories successful 8 countries. At its peak, nan Mound works employed complete 2,000 people.

In 1983, Tonka closed nan Mound works and relocated each manufacturing to El Paso, Texas, and Juarez, Mexico.

Chapter 11 is considered a reorganization bankruptcy - and companies participate it pinch nan volition of staying successful business. It differs from nan much superior Chapter 7, which indicates a business has nary volition of carrying connected and will waste each its assets.

In caller months, location has been a spate of bankruptcies adding to shop and edifice closures.