Fuhu, Inc. has filed a Chapter 11 petition in Delaware in order to facilitate as sale of the company to Mattel, according to a statement listed on its website.  The case is docketed in the United States Bankruptcy Court for the District of Delaware as Case No. 15-12465.  The case is assigned to The Honorable Christopher S. Sontchi.  Fuhu Holdings, Inc has filed an affilated case.

In support of the filings, the debtors have filed the Declaration of James Mitchell, the CEO of the debtors.  According to the Mitchell declaration, Fuhu is the maker of nabi tablets.  Fuhu has 115 employees at their headquarters in El Segundo, California.

According to the Mitchell declaration, certain events precipitated the filing, including untimely delivery of product to meet the 2014 holiday season, resulting in an oversupply of propduct during the first quarter of 2015.  This has resulted in serious disputes with Fuhu's supplier

According to the Mitchell declaration, the disputes resulted in the debtors lenders sweeping some $4.5 million in cash from the debtors in late October 2015.

Through the bankruptcy cases, the debtors seek to sell their businesses to Mattel, Inc. for $9.5 million and assumption of certain liabilities.  Mattel has agreed to act as the "stalking horse" for the proposed 363 sale.