FILING ALERT: Marbles: The Brain Store Companies File Chapter 11 in the Northern District of Illinois to Pursue Liquidation and Asset Sale

Relevant Documents:
Voluntary Petition
20 Largest Unsecured Creditors (Marbles Holdings)
20 Largest Unsecured Creditors (Marbles LLC)
20 Largest Unsecured Creditors (Marbles Brain Workshop)
First Day Declaration
DIP Financing Motion

Marbles Holdings, a Chicago-based developer, wholesaler and specialty retailer of games, puzzles, books and software designed to strengthen and stimulate the brain, doing business as “Marbles: The Brain Store”, filed for chapter 11 protection on Friday night in the Bankruptcy Court for the Northern District of Illinois. Affiliates Marbles LLC and Marbles Brain Workshop, LLC also filed. Marbles LLC and Marbles Holdings, LLC each report $1 million to $10 million in assets and $10 million to $50 million in liabilities, and Marbles Brain Workshop, LLC reports $100,000 to $500,000 in assets and $0 to $50,000 in liabilities. The debtors are represented by Adelman & Gettleman in Chicago. The case number is 17-03309 (TAB). The case has been assigned to Judge Timothy Barnes.

The debtors request $900,000 in DIP financing from prepetition senior secured lender Amzak Capital Management, to fund an orderly liquidation and asset sale. The company says it intends to work with Gordon Brothers Retail Partners to liquidate their inventory, and to explore a sale of their remaining assets, including intellectual property, with the help of Hilco IP Services, doing business as Hilco Streambank.

The first day hearing is scheduled for Wednesday, Feb. 8, at 10 a.m. EST.

Reorg First Day will provide a full summary once the first day briefing is complete.