KING OF PRUSSIA, Pa. — Educational toy retailer Zany Brainy Inc. said Thursday it received approval from a bankruptcy court for a debtor-in-possession financing agreement with Wells Fargo Retail Finance.
The $115 million credit line will let the company bring merchandise flow back to normal and quickly replenish all of its stores nationwide with more products, the company said.
"It provides the capital to ensure that our shelves are stocked with fresh, new merchandise immediately and for the months ahead," explained Tom Vellios, the company's president and chief executive officer. "This credit facility gives us a fresh start with our trade, as well as the ability to move forward with our strategies to improve operations and financial performance."
The company, which operates 187 stores in 34 states, including Utah, said it expects new products will begin to appear on the shelves as early as next week.
Court approval came from the U.S. Bankruptcy Court for the District of Delaware.