Millions of dollars due in payments to the suppliers are at risk as the iconic toy maker speeds toward US liquidation. The retailer's difficult financial position has also put more than 3000 jobs at risk in the UK.
The investors pulled out of the deal after discovering tens of millions of dollars in undisclosed debt. The Weistein Company says it will continue to pursue an orderly bankruptcy process to maximise its value.
The private toy retailer had previously said it was working with investment bank Lazard Ltd to help address its approximately $5 billion in debt.
Mark Karpeles, the chief executive of a now-defunct bitcoin exchange, has been charged with embezzlement and data manipulation that prosecutors claim caused the loss of about $500M.
Soupman Inc licensed the name and recipes of the chef who inspired Seinfeld's "Soup Nazi" character. The move to seek bankruptcy protection comes just weeks after Soupman's former CFO was indicted for tax evasion.
Subscribe to our Youtube channel for all latest in-depth, on the ground reporting from around the world.
Copyright © 2018 TRT World.