Post by Collector's Connection on Oct 26, 2004 23:28:46 GMT -5
Press Release Source: Applause, LLC
Plush Toy Maker Sells Applause Tradename for $7,550,000
Tuesday October 19, 2:33 pm ET
Toymaker Takes Important Step Towards Successful Reorganization
NEWHALL, Calif., Oct. 19 /PRNewswire-FirstCall/ -- The former Woodland Hills-based Applause, LLC today announced the sale of its tradename "Applause" and related tradenames to Russ Berrie and Company, Inc. (NYSE: RUS - News), the winning bidder in an auction conducted as part of Applause's chapter 11 reorganization.
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Last August, Russ Berrie agreed to pay $4,000,000 in cash for Applause and related trademarks. Due to Applause's recent entry in chapter 11 bankruptcy, the sale was re-structured as a bankruptcy court auction that resulted in a bidding war with a New York investment fund taking the deal from its original price to the winning bid of $7,550,000. The sale is expected to close by October 26.
The sale represents a major coupe for Applause in its reorganization under chapter 11 bankruptcy protection. The deal is expected to pave the way for a successful restructuring of the Company.
"This fits well within our plan to turnaround the Company, focus on our other valuable assets and grow our business again under a more efficient cost structure," said David Socha, Manager of Applause. Mr. Socha has been Manager of the Company since August of 2004 after the death of his uncle, former Applause CEO and industry legend, Bob Solomon. "This was also Bob's desire and I am sure he would have been pleased with the result and where we are headed," said Socha.
The Company intends to operate going forward under one of its other brands, Dream Pets, while the Company will continue to manufacture and sell plush toys and other gift items under its other successful brands, including R. Dakin & Co. and Josef. The sale process was managed by Applause's professional team including the corporate law firm of Casale Alliance, LLP and restructuring law firm of Peitzman, Weg & Kempinsky LLP.
About Applause, LLC
Since 1966, Applause has been a leader in the gift and plush toy industry as a distributor and licensee. Specializing in the design, manufacturing and international distribution of collectibles and gift items, Applause has developed name-brand products for all ages. The Applause business lines and brands include other well-known names in the gift/plush business, including its proprietary Dream Pets(TM) and R. Dakin & Co.(TM) brands.
For further information, please contact: Press, Gerard N. Casale, Jr. of Casale Alliance, LLP, +1-213-341-1664, gcasale@casalelaw.com, for Applause, LLC.
Plush Toy Maker Sells Applause Tradename for $7,550,000
Tuesday October 19, 2:33 pm ET
Toymaker Takes Important Step Towards Successful Reorganization
NEWHALL, Calif., Oct. 19 /PRNewswire-FirstCall/ -- The former Woodland Hills-based Applause, LLC today announced the sale of its tradename "Applause" and related tradenames to Russ Berrie and Company, Inc. (NYSE: RUS - News), the winning bidder in an auction conducted as part of Applause's chapter 11 reorganization.
ADVERTISEMENT
Last August, Russ Berrie agreed to pay $4,000,000 in cash for Applause and related trademarks. Due to Applause's recent entry in chapter 11 bankruptcy, the sale was re-structured as a bankruptcy court auction that resulted in a bidding war with a New York investment fund taking the deal from its original price to the winning bid of $7,550,000. The sale is expected to close by October 26.
The sale represents a major coupe for Applause in its reorganization under chapter 11 bankruptcy protection. The deal is expected to pave the way for a successful restructuring of the Company.
"This fits well within our plan to turnaround the Company, focus on our other valuable assets and grow our business again under a more efficient cost structure," said David Socha, Manager of Applause. Mr. Socha has been Manager of the Company since August of 2004 after the death of his uncle, former Applause CEO and industry legend, Bob Solomon. "This was also Bob's desire and I am sure he would have been pleased with the result and where we are headed," said Socha.
The Company intends to operate going forward under one of its other brands, Dream Pets, while the Company will continue to manufacture and sell plush toys and other gift items under its other successful brands, including R. Dakin & Co. and Josef. The sale process was managed by Applause's professional team including the corporate law firm of Casale Alliance, LLP and restructuring law firm of Peitzman, Weg & Kempinsky LLP.
About Applause, LLC
Since 1966, Applause has been a leader in the gift and plush toy industry as a distributor and licensee. Specializing in the design, manufacturing and international distribution of collectibles and gift items, Applause has developed name-brand products for all ages. The Applause business lines and brands include other well-known names in the gift/plush business, including its proprietary Dream Pets(TM) and R. Dakin & Co.(TM) brands.
For further information, please contact: Press, Gerard N. Casale, Jr. of Casale Alliance, LLP, +1-213-341-1664, gcasale@casalelaw.com, for Applause, LLC.