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Zany Brainy files for chapter 11

King of Prussia, Pa. – Locally based Zany Brainy Inc. filed a voluntary petition under chapter 11 of the federal bankruptcy code. Liquidity issues and the inability to secure additional financing led the company to file. Zany Brainy has secured a commitment of $115 million debtor-in-possession (DIP) financing from Boston-based Wells Fargo Retail Finance LLC subject to bankruptcy court approval.

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