Without any bidders in a public auction, the future looked disconnected for the Hatfield-based K’NEX, but Basic Fun, a toy company from Boca Raton, Florida stepped up to save the day.
“In connection with the acquisition Basic Fun did not assume the liabilities of K’NEX. All proceeds from the sale were paid to PNC Bank in satisfaction of its outstanding secured loan,” K’NEX said, writes Dan Sokil on reporter.online.com.
Last month PNC Bank held a public auction, but had no bidders, for K’NEX and its parent company Smart Brands International LLC. The auction came after a legal notice published earlier in the month said PNC had received an offer from a third party for the company, with an offer of $21 million on the table.
K’NEX will continue operations in Hatfield, according to a statement issued by the company. But it will do so as a branch of Basic Fun.
“It’s the current intent of the company to continue to source parts and as much of the production in America as possible, as has been the case over the years,” the company said.
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