Mega Brands Inc. Files For Chapter 15

Debtor Name:  Mega Brands Inc.

Year Filed:  2010

Jurisdiction:  United States Bankruptcy Court / District of Delaware

Asset Size:  100,000,001 to 500,000,000

Case Number:  10-10485

Industry:  Entertainment/Recreation, Chapter 15 Proceeding, Manufacturing

The Montreal-based debtor is a global supplier of building sets, art materials, games and puzzles.  They employ approximately 1400 people with more than half in Canada.

According to the CFO's Declaration, "the Company has experienced several operational challenges to its business, translating into declining sales and gross margins, numerous charges and write-offs, and negative publicity stemming from product recalls".  In addition to stagnation of the toy industry and fluctuations in the prices of raw materials,  the global recession "further exacerbated these challenges, as a precipitous decline in consumer spending during the Company's peak toy-selling season curtailed an anticipated recovery."

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