Basic Fun, the maker of Lincoln Logs, Lite Brites, Tonka trucks and other toys, has filed for Chapter 11 bankruptcy, citing the struggles of Toys R Us, which underwent Chapter 7 bankruptcy and liquidation before closing its physical stores in 2018.

Basic Fun will restructure to stay in operation as it seeks approval of a $50 million debtor-in-possession loan from Great Rock Capital affiliates as well as $15 million to be proffered by the Royal Bank of Canada and company founders John MacDonald and Jay Foreman, per a release from the Boca Raton, Florida-based firm.

Mr. Foreman, who is also the CEO and the chief shareholder of Basic Fun, said, “Since the demise of our industry’s largest toy retailer Toys R Us in 2018 through the tumult of the trade wars with China in 2019, COVID in 2020 through 2021, the travails of the supply chain crisis in 2022, inventory overstocks in 2023 and consumer slowdown in the early part of 2024, our industry and Basic Fun have been through a gantlet of challenges.”

Specifically, the Chapter 11 protection afforded to Toys R Us left Basic Fun unable to collect on $6 million it was owed as a supplier, according to The Wall Street Journal. When Toys R Us ultimately filed for Chapter 7 and liquidation, Basic Fun was able to get back only $1 million.

The company employs 112 people in the U.S. and 60 in Hong Kong, according to the WSJ.

Many of the company’s creditors are in Asia.

• Brad Matthews can be reached at bmatthews@washingtontimes.com.