Last Updated on January 2, 2020 by Danielle
Florida company, Basic Fun, purchased K’Nex toy company in an auction last month.
K’Nex, the construction toy company, was purchased in an auction held by PNC Bank last month by another toy company named Basic Fun, which resides in Boca Raton, Florida.
Through the auction sale, Basic Fun acquired the rights to K’Nex’s assets as of January 29, 2018, according to Kate Loffio, a K’Nex spokesperson. The deal was eventually finalized on Tuesday.
The Montgomery County toy maker will still run its operations in Hatfield, Pennsylvania and plans to retain most of its staff. Presently, K’Nex employs around 200 employees.
Prior to the auction, PNC Bank was offered $21 million to obtain rights to K’Nex’s assets.
Interestingly, Basic Fun did not take on all of K’Nex’s liabilities. Basic Fun’s owners have been contacting K’Nex’s suppliers and vendors to obtain the necessary parts and services. In fact, the new owners plan to continue K’Nex’s long-standing tradition of using parts made in the USA.
Allegedly, K’Nex failed to pay more than ninety thousand dollars to a print company in New Jersey. The full extent of their liabilities is unknown at this time.
K’Nex partnered with Cathay Capital North America investors to help the founding Glickman family devise a successful transitional plan as well help the company expand its operations around the world.
Last year, Basic Fun merged with The Bridge Direct and Tech 4 Kids. The 25-year-old company specializes in novelty and impulse toys, handheld electronic games, and classic recreations.
Source: The Morning Call