Article: Zany Brainy reorganizes under Chapter 11.(Knight Ridder Newspapers)

Zany Brainy may have sipped up more than it could slurp last year when it acquired rival Noodle Kidoodle and tried to open 27 new Zany Brainy stores at the same time, just as it was eating a $9 million-plus loss in an Internet venture.

The result? A case of indigestion and a cash flow crunch that landed the King of Prussia, Pa., specialty toy retailer in federal bankruptcy court Tuesday, listing more than $100 million in estimated liabilities.

Wednesday, Zany Brainy will go to court to seek approval of a financial lifeline, a $115 million debtor-in-possession loan from Wells Fargo Retail Finance LLC.

"It will be not only business as usual, but ...

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