Strapped Toy Company Selling Product Line
Undated (AP) _ Hasbro and its partner will acquire the lines and the New York state factory for $30 million, the Hartford Courant said, quoting industry analysts and Coleco sources.
Barbara Wruck, a Coleco spokeswoman, said today the company had no comment on the report. A Hasbro spokesman was said to be in a meeting and unable to comment.
Coleco executives told workers of the agreement during a meeting Monday morning at the company’s West Hartford headquarters, the Courant said.
Coleco, which lost $47.4 million in the first quarter of this year, has been in default on the interest payments on $335 million of its debt securities. Investors who own $184 million of those bonds have demanded immediate payment.
The toymaker has offered to exchange the $335 million in bonds for a combination of new bonds and common stock, but the orginal terms of that offer were rejected by investors. The company has extended the offer to June 30.
The product lines to be sold include plastic wading and splashing pools, pool filers, children’s outdoor furniture and clubhouses, and pedal-powered and battery-operated cycles.
Those lines, which helped launched Coleco in the toy business in 1956, had sales last year of $77 million.