King of Prussia, PA–Toy cataloger/retailer Zany Brainy has filed a voluntary petition under Chapter 11 of the Federal Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. Zany Brainy has secured a commitment of $115 million debtor-in-possession financing from Wells Fargo Retail Finance, which is subject to court approval.
The bankruptcy filing comes five months after the company ended its Internet joint venture with Online Retail Partners, a New York-based e-commerce development company that had an approximately 45% stake in ZanyBrainy.com. In July 2000, Zany Brainy had acquired competitor Noodle Kidoodle for 1.233 shares of Zany Brainy common stock for each share of Noodle Kidoodle common stock.