UPDATE: Kid Brands Sells Russ, Applause Brands in $1.25M Deal
Kid Brands, Inc. (NYSE: KID) today announced that, on June 30, 2013, the Company sold the "Russ" and "Applause" trademarks and trade names and associated goodwill, which assets were retained by the Company when it sold its gift business in late 2008.
The purchase price for the intellectual property (which has no value on the Company's books) was $1.25 million, payable by promissory note (the "Note") as follows: a $100,000 installment on the Note was paid on July 2, 2013, a payment of $650,000 is due July 31, 2013, and the remaining $500,000 is payable in specified installments over a four year period. The buyer is Larsen and Bowman Holdings Ltd., a Limited Corporation organized under the laws of British Columbia, and its obligations under the Note are secured by the intellectual property purchased. Other terms and conditions of the sale are disclosed in a Current Report on Form 8-K, to be filed by the Company today.
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