The Parent Company Voluntarily Petitions for Reorganization Bankruptcy
Protection
DENVER, Dec. 28 /PRNewswire-FirstCall/ -- The Parent Company
(Nasdaq: KIDS), today announced that it and nine of its subsidiaries have
filed for voluntary protection under Chapter 11 of the U.S. Bankruptcy Code
before the United States Bankruptcy Court in Wilmington, Delaware.
"This action is an unfortunate but necessary and responsible step to
preserve the company's value for our stakeholders in light of the ongoing
challenging retail environment," said Michael Wagner, CEO of The Parent
Company.
The company has engaged the investment banking firm Oppenheimer & Co. to
explore strategic alternatives, including a sale of some or all of the
company's businesses.
The company's Chapter 11 counsel is Pachulski Stang Ziehl & Jones LLP, and
the company's financial adviser is Clear Thinking Group LLC.
In addition, the company announced that, on December 24, 2008, the company
received a Nasdaq Staff Deficiency Letter notifying the company that it is not
in compliance with the requirements for continued listing set forth in Nasdaq
Marketplace Rule 4310(c)(14) because of the company's failure to timely file
its Quarterly Report on Form 10-Q for the period ended November 1, 2008.
Pursuant to Nasdaq rules, the company has 60 days, until February 23,
2009, to submit a plan to Nasdaq to regain compliance. Following any such
submission, Nasdaq may provide the company with up to 180 days (until June 22,
2009) to regain compliance.
About The Parent Company
The Parent Company is a leading commerce, content and new media company
for growing families. The Parent Company provides comprehensive eCommerce and
eContent resources to help families plan, play and grow. The company's toy
business offers toys and children's products through its eToys.com web site,
catalogs and strategic retail partnerships; and personalized dolls and
accessories through its My Twinn.com brand. Through its baby business, the
company is a leading online retailer of brand-name baby, toddler and maternity
products sold through the BabyUniverse.com and DreamtimeBaby.com web sites.
The company's luxury brands, PoshTots.com and PoshLiving.com, reach the
country's most affluent consumers with luxury baby apparel and furnishings.
With its content sites, BabyTV.com, PoshCravings.com and ePregnancy.com, The
Parent Company has established a recognized platform for the delivery of
content and new media resources to a national audience of expectant parents.
The Parent Company is a market-leading digital content and eCommerce company
focused on parents.
Special Note Regarding Forward-Looking Statements
This press release contains forward-looking statements that involve risks
and uncertainties relating to future events or our future financial
performance. These statements involve known and unknown risks, uncertainties
and other factors that may cause the actual results to differ materially from
those expressed or implied by such forward-looking statements. You are advised
to consult further disclosures we may make on related subjects in our future
filings with the Securities and Exchange Commission.
In some cases, you can identify forward-looking statements by terminology
such as "may," "could," "should," "expect," "plan," "intend," "anticipate,"
"believe," "estimate," "predict," "potential" or "continue," the negative of
such terms or other comparable terminology. These statements are only
predictions. Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee future results,
levels of activity, performance or achievements.
SOURCE The Parent Company
Media Relations, The Parent Company, +1-303-228-9000
