Lake Forest, CA—No sooner had L.L. Knickerbocker Co. (OTC Bulletin Board: KNIC) filed for Chapter 11 bankruptcy protection than it posted a profit. The parent company of the Magic Attic Club dolls catalog reported second-quarter net income of $180,000, compared with a net loss of $671,000 for the second quarter of 2000. The company, which also manufactures and markets collectibles and jewelry, suffered a 24% decline in net sales, to $6.7 million for the three months ended June 30 from $8.8 million a year ago. The company blamed the decline largely on the discontinuance of two celebrity brands.
Meanwhile, Knickerbocker has agreed to sell substantially all its assets subject to an initial cash overbid of $6.2 million, subject to court approval. A hearing is set for Sept. 4.