4Kids Entertainment Files for Chapter 11 Bankruptcy Protection

April 6, 2011 at 10:19 pm | Posted in 4Kids, Other Stuff | 6 Comments
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Seto Kaiba continuing to lust for more money in episode 109
An image from the past.

4Kids Entertainment has filed for Chapter 11 bankruptcy protection at the U.S. Bankruptcy Court for the Southern District of New York. This action comes after the American company was served with a lawsuit by TV Tokyo and Nihon Ad Systems, Inc. (NAS) last month alleging breach of contract and seeking damages totaling more than $4 million.

4Kids released a press release this afternoon detailing the filing and their intentions to continue exploring “strategic alternatives,” such as a sale or reorganization of their businesses. The filing extends to all of 4Kids’ American-based subsidiaries, but not 4Kids Entertainment International, Ltd., the company’s subsidiary headquartered in London, England.

This bankruptcy filing will subject 4Kids to various risks, including the inability to retain its current executives and employees and the reduction of its common stock to zero. Reorganizing under Chapter 11 is a long and costly procedure and there are no guarantees that the company will be able to finance its current activities and future obligations, or even develop a plan that meets the approval of the court, creditors, and shareholders. In the event that they fail to adequately reorganize, 4Kids may be unable to prevent their assets from being liquidated.

In light of the upcoming bankruptcy proceedings, the lawsuit filed by TV Tokyo and NAS has been halted until further notice. The Japanese licensors may now face an uphill struggle in their attempt to fully recover the nearly $4.8 million in damages allegedly owed them.

For all of the fans who have been wondering what the future holds for the Yu-Gi-Oh! franchise outside of Japan, this development will do nothing but throw another wrench in the works. If it wasn’t already obvious before, it should be by now: we aren’t likely to get any immediate answers. We can only continue to play the waiting game…

6 Comments »

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  1. Well, thanks to TV Toyko and NAS, I now have little to no reason to wake up on Saturday mornings anymore to watch TV. Oh sure, there’s Pokemon, but honestly, the new season has already angered me for unnecessary reasons which I won’t say. So I won’t bother watching that.

    And I’m sure the 4Kids haters are going to say ‘Yes, 4Kids is dead! No more butchering anime!’ Ugh, and I’m never going to hear the end of it. >__> I would normally get angry towards them, but no, that would be immature so I won’t follow their route. And it’s also sad, because the 5D’s dub improved in general. Now that this happens, it looks like the Yu-Gi-Oh series is going to pull another Sailor Moon. Well, for now anyway.

    So I’m guessing that this means that despite all this, 4Kids is finding away to keep their company alive? If so, I hope they can do this. I know it seems nigh, but I’ve always had faith in 4Kids, despite the struggles they’ve been through, so I won’t give up on them just yet. I wish the others could say the same thing, but knowing them…

  2. Okay, what happens next?

  3. @Sonic Phantom
    By “pull another Sailor Moon,” are you suggesting that we might not see any further incarnations of the Yu-Gi-Oh! anime outside of Japan? It’s possible, I suppose, but my guess is that Yu-Gi-Oh! is too hot a property to simply brush away. Someone somewhere would want to find a way to keep it alive and make money. When might this happen? Would 4Kids be in the driver’s seat? Who knows…
     
    @Joseph Hostage
    Next, we play the waiting game and let the bankruptcy proceedings play out. 4Kids will either go bankrupt or dig itself out in one form or another.

  4. Well, at least they’re doing subtitled Sonic X episodes on Toonzaki. Sonic X is like Yu-Gi-Oh! Capsule Monsters. More episodes of Sonic X didn’t air in Japan until the year 2009. Japan probably voiced Yu-Gi-Oh! Duel Monsters ALEX in Japanese, but didn’t air in Japanese TV. Why did Japan decide not to release “Capsule Monsters” anime in Japan?

  5. Well, if they did that, they would lose a lot of money and the fanbase itself would never hear the end of it. If only TV Tokyo and NAS dind’t have to pull this Lawsuit on 4Kids, I’m sure everything would be fine. And yes, I am aware of the Lawsuit issue with 4Kids, but I still don’t believe it’s their fault. And if it sounds like I’m being biased for them, I’m not. Yes, they’ve made bad decisions in the past, but I wouldn’t complain about it unlike the hardcore anime fans.

    Actually, I just thought of something. Little Kuriboh’s channel keeps getting taken down by the DM company mutiple times now. And then after that, they target 4Kids with this Lawsuit. Hmm…coincidences anyone?

  6. i don’t remember exactly, and maybe this was stated above, but 4kids used money they got from japan THEY WEREN”T supposed to use. i think for themselves.


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