Sources Say Russ Berrie Files Bankruptcy
GDA Staff -- Gifts and Dec, 4/25/2011 3:40:23 PM
Wayne, NJ - Sources in the industry have confirmed that major gift manufacturer Russ Berrie filed for Chapter 7 bankruptcy as of April 21, which usually means the business will liquidate rather than reorganize. The company could not immediately be reached for comment.
The move comes a little more than two years after Encore bought the Russ Berrie gift business and changed its name to match. The former Russ Berrie company continues to manufacture bedding and other juvenile products under the name Kid Brands.
Kids Brands holds a 19.9 percent stake in the company, as well as a promissory note for $19 million that matures in December 2013. The news follows Kids Brands' recent firing of the president and managing director of operations of its LaJobi brand, in response to findings from an investigation into LaJobi regarding alleged evasion of import duties.
It is not clear what will be the long term fate of the Russ and Applause brands, which were licensed, rather than sold outright.
Hi, As far as I know you can still place orders with the company. Call the office in Wayne NJ. Hopefully something good will come from this and the company will get back to being a leader in the industry.
Anonymous - 2011-06-05 18:58:53 EDTA box of small "Russ" farm animals were the first gifts our shop ever carried. Bob Heffelfinger was our rep. until he retired several years ago. I too remember the beautiful showroom in Jersey, Bob and I would drive up from York, PA for the day so that I could order all of the new merchandise. I was sad to see the decline of the company after Mr. Berrie passed away. One of my main retail items here at Brown's Orchards
Susan Bleacher-Brown's Orchards - 2011-05-06 16:14:24 EDTA sad day in the Gift Industry. Russ Berrie and Jim Madonna were the innovators who paved the way for other companies. They set the high standard in this industry.
Without the two of them at the helm of this ship, it is no wonder the ship sank.
I enjoyed 17 years working for the two masters of the gift industry.
I wish all the employees good luck
Russ Rossi
Russ Rossi - 2011-04-27 13:53:42 EDT
Wondering what will become of the licensed Raggedy Ann & Andy dolls. I have had them in my store for years. First with Applause and then with Russ Berrie.
Brenda Higgins/Colonial Cottage - 2011-04-26 11:19:04 EDTThis is sad, but not unexpected. I purchased from Russ Berrie for two hospital gift shops, working with two dedicated regional reps, over the last decade. I fondly remember past visits to the flagship showroom in NJ & was thrilled to meet both Russ & Anjelica Berrie. I feared the company would decline when members of the Berrie family were no longer involved. The vibe has not been the same, especially since becoming part of Encore. I suspect Mr. Berrie would be disappointed to see what has become of the company he founded and built to be an outstanding world brand.
Patrice Pallone - 2011-04-25 17:08:50 EDT-
Russ Bankruptcies Leave $60-$150 Million in Debts
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