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Parent Co. files for bankruptcy

December 30, 2008|bloomberg news

The Parent Co., a Denver online retailer of products for children and babies, filed for bankruptcy protection after sales plunged.

Nine affiliates, including EToys Direct, BabyUniverse, Dreamtime Baby, PoshTots, Gift Acquisition and My Twinn, also sought protection.

The company listed assets of $20.6 million and debt of $35.7 million in Chapter 11 documents filed in Wilmington, Del.

Net sales were about $20 million in the first half of fiscal 2008, compared with about $106 million for all of the previous year, according to court papers.

Parent has sustained a sharp drop in sales because of lower consumer spending, Chief Executive Michael Wagner said in court papers.

Parent is owned by D.E. Shaw & Co., which holds about 63% of the company's common stock.

The company is seeking permission to borrow $10.9 million from an affiliate of D.E. Shaw to help fund operations while it finds a buyer.

Parent stock fell 15 cents, or 65%, to 8 cents Monday.

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