The Parent Company Files For Bankruptcy
The Parent Company (NASDAQ:KIDS) filed for bankruptcy protection yesterday. The Parent Company runs several Internet retailing companies such as eToys.com, MyTwinn.com, BabyUniverse.com, Dreamtime Baby, ePregnancy, Babytv.com, Poshtots, PoshCravings, and PoshLiving. The Parent Company filed the Chapter 11 along with their majority owner D.E. Shaw & Company.
This move was ““an unfortunate but necessary and responsible step to preserve the company’s value for our stakeholders in light of the ongoing challenging retail environment,” according to Michael J. Wagner, CEO of The Parent Company. Retailers as a whole had one of their worst holiday shopping seasons with the exception of Amazon.com. To try and win Internet retailers to eToys, the company offered 60% of on over 1,300 toys and games. Clearly this wasn’t enough to woo customers to buy a significant amount of goods from them.
About eight years ago, eToys filed for bankruptcy and KB Toys bought them out for about $5 million. Three years after that, KB Toys had to file for bankruptcy. KB Toys had to file again this year. Now they are having going out of business sales. It’s been a rough year for retail everywhere.
[via NYT]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry