Assets of the Hatfield Township-based toy maker K’NEX are set to be auctioned off Monday by lender PNC Bank.
Freda Savana @fredasavana
The popular toy maker K’NEX will go on the auction block Monday, when PNC Bank attempts to sell the assets of the Hatfield Township company, according to a legal notice published Thursday.
K’NEX has been producing color-coded connector construction toys for children since 1992. It also owns iconic toy brands Lincoln Logs and Tinkertoy.
The notice, published in the Philadelphia Inquirer, said PNC, which owns the company’s assets as collateral for an unspecified amount of loans, already has received a $21 million offer for K’NEX holdings. Included in the sale are all K’NEX accounts, inventory, equipment, machinery, customer lists and more. It does not include cash, ownership in the company itself or anything toy retailer Toys R Us owes the company.
K’NEX was founded by Joel Glickman as an offshoot of his family’s plastic parts manufacturing company, the Rodon Group. In recent years, K’NEX and Rodon, under the leadership of Glickman’s son-in-law, Michael Araten, became widely known for its efforts to reshore American jobs once sent overseas. That was one of the reasons why, in 2012, the companies hosted President Barack Obama for a speech on the then-looming fiscal cliff. Hillary Clinton also made a stop at the company as she kicked off her presidential campaign following the Democratic National Convention in Philadelphia.
In May 2016, K’NEX formed a partnership with private investment firm Cathay Capital North America, creating a new holding company, Smart Brands International Co. The family maintained majority ownership in the new company, and Araten remained CEO. At the time, K’NEX said, the deal was intended to help it expand into overseas markets, where demand for U.S.-made goods is high.
What the pending auction means for the future of K’NEX was not immediately clear; this news organization was not immediately successful in reaching representatives from K’NEX, Cathay or an attorney representing PNC for comment.
The auction is set for 11 a.m. Jan. 29 in Philadelphia.
