logo
Plus   Neg
Share
Email

Parent, nine units file for Chapter 11 - Update

The Parent Co. (KIDS), a commerce, content and new media company, Sunday said the company and nine of its subsidiaries filed for voluntary protection under Chapter 11 of the U.S. Bankruptcy Code before the United States Bankruptcy Court in Wilmington, Delaware.

The company has engaged the investment banking firm Oppenheimer & Co. to explore strategic alternatives, including a sale of some or all of the company's businesses. Parent's Chapter 11 counsel is Pachulski Stang Ziehl & Jones LLP, and the company's financial adviser is Clear Thinking Group LLC.

Commenting on the Chapter 11 decision, Michael Wagner, CEO of the company, said, "This action is an unfortunate but necessary and responsible step to preserve the company's value for our stakeholders in light of the ongoing challenging retail environment."

Additionally, the company also said that on December 24, it received a Nasdaq Staff Deficiency Letter notifying that it is not in compliance with the requirements for continued listing due to its failure to timely file its quarterly report on Form 10-Q for the period ended November 1.

The company has 60 days, until February 23, 2009, to submit a plan to Nasdaq to regain compliance. Following such submission, Nasdaq may provide the company with up to 180 days, until June 22, 2009, to regain compliance.

KIDS closed Friday's regular trade at $0.2290, up $0.0390 or 20.53%, on 16,673 shares.

For comments and feedback contact: editorial@rttnews.com

Follow RTT