Babies ‘R’ Us Photo Studios Filing Bankruptcy

January 14, 2010 by Cathy Ribble
Filed under: News

Managers of the Babies ‘R’ Us photography studio known as Kiddie Kandids received a surprise when they reported to work Monday and learned for the first time that the studio would no longer be open for business.

The Utah-based company ceased operations of its 184 studios across the United States, most of which operated inside Babies ‘R’ Us locations. Employees of Kiddie Kandids learned of the company’s fate through a company email when they reported to work Monday morning. There was no warning.

Tyesha Thomas, manager and photographer of the New Springville, New York, location, told reporters she had been informed that the company had ceased operations and that she and her staff were terminated.

‘You just can’t tell people they’re out of a job. You have to give them some notice.” Ms. Thomas had been with the photography studio for more than six years, and now as an unemployed single mom, she is not sure what the future holds.

According to Kiddie Kandids, the company was forced to cease operations when its banks quit funding the continued operation. The company has experienced growing challenges over the past 18 months as sales have dropped during the current economic recession.

“Without continued funding, Kiddie Kandids was unable to meet its imminent financial obligations,” said Dale Merrill, the company’s CEO. “We have exhausted all possible avenues for funding and have come to the end of the road…It is our hope that if the assets are purchased out of bankruptcy that the buyer will consider hiring back many of our employees.”

The company is seeking relief by filing a voluntary bankruptcy petition under Chapter 7 of the Bankruptcy Code.

It is unclear at this time what recourse Babies ‘R’ Us customers will have if they had already paid for services and products which had not yet been delivered.