Close Menu

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    Walgreens Store Closures: Full List of Locations Shutting Down This Month

    June 4, 2025

    Expert Predicts Summer 2025 Travel Deals: 5 Budget-Friendly Destinations to Book Now

    May 28, 2025

    Walmart Addresses Trump’s Demand to Cover Tariff Costs

    May 25, 2025
    Facebook X (Twitter) Instagram
    Friday, June 6
    X (Twitter) Instagram
    NinepenniesNinepennies
    • Home
    • Featured

      The Highest-Paying Jobs in America—And It’s Not in Finance!

      March 27, 2025

      7 Must-Buy Costco Sale Items Before They’re Gone This February 

      February 10, 2025

      Steel Stocks on the Rise: 3 Winners After Tariff Announcements

      February 4, 2025

      The Best Oil Stocks to Invest $200 in Right Now

      January 28, 2025

      Top 10 Best Jobs of the Year: High Demand, Six-Figure Salaries, and Bright Futures

      January 23, 2025
    • Entrepreneur News

      Walgreens Store Closures: Full List of Locations Shutting Down This Month

      June 4, 2025

      Walmart Addresses Trump’s Demand to Cover Tariff Costs

      May 25, 2025

      Walgreens Expands Use of Prescription-Filling Robots to Reduce Costs and Support Pharmacists During Turnaround

      May 15, 2025

      Hooters Declares Bankruptcy

      April 8, 2025

      Costco to Open 6 New U.S. Stores Next Month and Another in April—See the Locations and Dates

      February 28, 2025
    • Financial Wellness

      Smart and Risky Spots To Store Your Cash, Coins, Crypto, and More

      April 24, 2025

      The Minimum Salary Needed to Be in the Upper-Middle Class in 2025

      March 21, 2025

      Should You Buy, Sell, or Hold Amazon in 2025?

      March 7, 2025

      From Hawaii to West Virginia: The Shocking 77-Year Gap in Retirement Savings Longevity

      February 24, 2025

      Are the 3 Highest-Paying Dividend Stocks in the Dow Jones Worth Buying?

      February 17, 2025
    • Popular Now

      European Markets Climb as Trump Moves to Cut Tariffs on Auto Parts

      May 1, 2025

      Robinhood Expands Trading to Include Bitcoin, Oil, and Gold Futures 

      January 30, 2025

      Powerball Winning Numbers for January 18: Oregon Player Takes Home $328.5 Million Jackpot

      January 21, 2025

      Morgan Stanley Surpasses Estimates With Robust Equities and Fixed Income Trading Revenue

      January 20, 2025

      10-Year Treasury Yield Edges Lower Amid Anticipation of Economic Data, Fed Remarks

      November 21, 2024
    • Wealth

      America’s 10 Wealthiest Self-Made Women, According to Forbes— #1 May Surprise You

      February 5, 2025

      8 Wealthiest Royals in History

      February 4, 2025

      One Powerful ETF That Grew $10,000 to $55,000 in a Decade: Is It Worth Buying in 2025?

      January 28, 2025

      Coinbase CEO Predicts Bitcoin Could Hit Multi-Million Dollar Value

      January 24, 2025

      Dogecoin Surged After Elon Musk’s Appointment: What’s Happening With This Popular Meme Coin?

      November 18, 2024
    NinepenniesNinepennies
    Home » U.S. Toy Company, Basic Fun!, Goes Bankrupt with $50M Debt
    Entrepreneur News

    U.S. Toy Company, Basic Fun!, Goes Bankrupt with $50M Debt

    AramideBy AramideJuly 29, 2024Updated:July 30, 20245 Mins Read
    Share Facebook Twitter Pinterest LinkedIn Tumblr Reddit Telegram Email
    Share
    Facebook Twitter LinkedIn Pinterest Email

    A major toy company that makes classic toys known as Basic Fun! is about to go under. The company that makes Care Bears, Lincoln Logs, and Tonka Trucks has filed for Chapter 11 bankruptcy protection. This company, located in South Florida, has been making people, both children and adults, happy for over ten years. It is now facing serious financial trouble because it owes $50 million.

    Basic Fun!: The Founder

    Jay Foreman, an experienced industry professional, was the brain behind this toy company. He founded Basic Fun! in 2009. The company grew and gained recognition by buying well-known toy brands and rebranding them. 

    Source: Pinterest

    Basic Fun! added famous names like Lite Brite, K’nex, and Care Bears to their collection. The company’s approach of mixing nostalgic elements with new ideas proved successful. The strategy and innovation enabled them to sell their toys in more than 60 countries around the world.

    Basic Fun!: The Challenges of a Toy Empire 

    The toy industry can be very unpredictable, and Basic Fun! has experienced its share of difficulties. One major challenge came in 2017 when Toys “R” Us, one of Basic Fun!’s biggest customers, went bankrupt. Toys “R” Us used to buy $35 million worth of toys from Basic Fun! every year.

    Source: Pinterest

    When Toys “R” Us went out of business, Basic Fun! lost $6 million that it was owed. It was only able to get back $1 million through insurance.

    The Effect of the Pandemic 

    The COVID-19 pandemic made things even harder for the already troubled company. During the lockdown, the company could not supply toys, adding to its woes. Things didn’t get any better in 2019, as Basic Fun! found it difficult to shift its stock from Toys “R” Us to Amazon. 

    Source: Pinterest

    Then, in 2021, the company had its worst year ever. It lost $10 million in sales from its amusement division because entertainment venues and amusement parks were closed due to the pandemic.

    ALSO READ: IRS Set to Increase Child Tax Credit Amount in 2024 Update

    Basic Fun!: Debts and Losses

    For Basic Fun!, there was no coming back from the losses. By the end of June 2024, the company couldn’t keep up with some of its loan payments. That was not all; there were still more debts due in early July. 

    Source: Pinterest

    The debts kept piling up, and under the increasing financial strain, the company decided to make a move. On June 28, 2024, they filed for Chapter 11 bankruptcy protection to reorganize their debts and try to stay in business.

    Helping Hands

    Even though the news is tough, Basic Fun! stays optimistic about its future. They are not letting the losses and debts keep them down. The company will keep running while it reorganizes its debt. They are not just doing this alone; the company is receiving financial aid from some organizations. Basic Fun! has received $50 million in financing from Great Rock Capital to help during this time.

    Source: Instagram

    Jay Foreman and John MacDonald, the founders of RBC and the company, have agreed to provide $15 million in additional funding. This extra money will help Basic Fun! keep enough stock. It will also help the toy company support its licensing and retail partners. These solutions will enable them to stay in business and continue operating.

    The CEO’s Statements

    The company’s CEO made some statements. He said he is committed to tackling the problems the company as a whole is facing. He explained the company’s next steps, stating that they intend to learn from their setback and move forward from there. 

    Source: Instagram

    Jay Foreman, the CEO, said, “We plan to use the restructuring process to leave these issues behind us. This will help us achieve a successful future and also set us up for growth while creating value.”

    A Lasting Legacy 

    You already know Basic Fun! is going through a challenging time. It is also a good moment to consider how much the company has contributed to the toy industry. Apart from the industry, we can also think about their impact on children and how the company brightened their lives. 

    Source: Pinterest

    Basic Fun! has created beloved toys like the soft and cuddly Care Bears and classic building sets like Lincoln Logs and K’nex. These toys have inspired creativity and brought joy to kids worldwide.

    Basic Fun’s Tonka Toy

    While Basic Fun made a lot of toys that were popular among children, some stood out. Tonka is one of Basic Fun!’s most famous brands. These strong metal trucks were created in 1946; since then, they have been a favorite toy among kids. 

    Source: Pinterest

    Tonka was originally created in Mound, Minneso,st under the name Mound Metalcraft. It was a trailblazer in creating toy vehicles that looked like the real thingTheseey were basically miniature versions of real cars.

    ALSO READ: A GoFundMe Campaign For Donald Trump Raises Over $1 Million 

    Basic Fun!: Beyond Challenges

    In the 1970s, Basic Fun! was at its busiest. The company employed over 2,000 employees and made about 8 million toys yearly. In 2019, Basic Fun! bought the Tonka brand from Hasbro. After the acquisition, they still kept the brand’s tradition alive.

    Source: Instagram

    Although the future is not very certain, it is clear that life would be a little less fun without Basic Fun! The company’s CEO, Jay Foreman, has expressed that the company’s mission, along with its brands, is to encourage kids to “Get Out and Play!” This goal is important, and goes beyond any short-term financial challenges the company might face.

    You Might Also Like:

    One of the Largest Solar Companies in the US Is on the Cusp of Collapse

    Top 10 U.S. States Where a Single Individual Can Live Comfortably on $20 an Hour

    Here Are 10 Red Flags That Show That a Bar Has Bad Drinks

    ‘Micro Weddings’ Are the New Trend as Couples Cannot Afford Inflated Wedding Prices

    McDonald’s Reintroduces Limited-Time Pie Flavor

    bankruptcy Basic Fun! Care bears Tonka Truck Toy Toys Toys r us U.S Toy company
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Previous ArticleOne of the Largest Solar Companies in the US Is on the Cusp of Collapse
    Next Article How Fintech’s False Promises of Convenience Led to Thousands of Americans Losing Access to Their Bank Accounts

    Related Posts

    Entrepreneur News

    Walgreens Store Closures: Full List of Locations Shutting Down This Month

    June 4, 2025
    General

    Expert Predicts Summer 2025 Travel Deals: 5 Budget-Friendly Destinations to Book Now

    May 28, 2025
    Entrepreneur News

    Walmart Addresses Trump’s Demand to Cover Tariff Costs

    May 25, 2025
    Add A Comment

    Comments are closed.

    Top Posts

    How to Delete Credit Karma Account: Step-by-Step Guide

    October 14, 2024

    Home Depot Penny Items: How To Find Them

    October 17, 2024

    Introducing the 2025 Caterpillar Pickup Truck for the U.S. Market

    September 5, 2024
    Stay In Touch
    • Twitter
    • Instagram
    You Might Like

    Subscribe to Updates

    Get the latest tech news from FooBar about tech, design and biz.

    Most Popular

    How to Delete Credit Karma Account: Step-by-Step Guide

    October 14, 2024

    Home Depot Penny Items: How To Find Them

    October 17, 2024

    Introducing the 2025 Caterpillar Pickup Truck for the U.S. Market

    September 5, 2024
    Our Picks

    Walgreens Store Closures: Full List of Locations Shutting Down This Month

    June 4, 2025

    Expert Predicts Summer 2025 Travel Deals: 5 Budget-Friendly Destinations to Book Now

    May 28, 2025

    Walmart Addresses Trump’s Demand to Cover Tariff Costs

    May 25, 2025
    X (Twitter) Instagram
    • Home
    • Editor’s Picks
    • About Us
    • Get In Touch
    • Privacy Policy
    • Terms of Use
    • Editorial Standards
    © 2025 Ninepennies.

    Type above and press Enter to search. Press Esc to cancel.