Fuhu Files for Chapter 11 Just Ahead of this Year’s Holiday Season

December 14, 2015 | Comments Off on Fuhu Files for Chapter 11 Just Ahead of this Year’s Holiday Season
Posted by Donald F. Campbell, Jr.

Fuhu Inc., named the most promising company in America in 2014 by Forbes Magazine, filed for Chapter 11 bankruptcy in Delaware last wwek. The producer of the nabi tablet, an educational technology product created for children, prepared for a $9.5 million asset acquisition by Mattel, Inc. Before the judge approves Mattel’s proposal, other companies may also submit bids. According to Fuhu’s CEO, Jim Mitchell, the company expects to continue serving their customers throughout every step of the sale.

The children’s tablet producer blamed their manufacturer, Foxconn for their recent money troubles. In 2013 Fuhu earned more than $195 million in revenue, but late deliveries during the 2014 holiday season caused a significant decline in both profits and confidence in the company.

This September, Foxconn discontinued supply of the tablets to Fuhu and a month later cut communications completely due to Fuhu’s inability to make payments on time. This, combined with an increase in competition from LeapFrog, VTech, RCA and others may prove to be a challenge for Fuhu during this holiday season as well.