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February 20, 2010

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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