Attempted Bankruptcy Sale Free and Clear of Withdrawal Liability to Pension Fund
The debtor holding company owned several companies (K & D Companies) that provided environmental and industrial services. Two of its companies entered into collective bargaining agreements (CBAs) with a union.

The Playhut sale is emblematic of the financial crisis faced by companies caught up in the “retailpocalypse.” The events that unfolded throughout the Playhut sale reveal the extraordinary measures some professionals are taking to preserve stakeholder value under dire circumstances.

Founded in 1992, Playhut produced innovative play structures and enjoyed huge success. Playhut grew, obtained a significant share of the toy structures market, and formed relationships with major retailers. It sold products in North and South America, Europe, Asia and Australia. Playhut produced more than 25 years of sustained success before eventually falling victim to the massive collapse and liquidation of Toys “R” Us. The Toys “R” Us collapse, among other factors, pushed Playhut into bankruptcy. On May 24, 2018, Playhut filed a voluntary chapter 11 petition in the U.S. Bankruptcy Court for the Central District of California. Immediately after filing its bankruptcy petition, Playhut filed an emergency motion for cash-collateral funding and other financial protections, although it did not have a clear strategy on how it was going to move forward.