SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): JANUARY 8, 1998
KIDDIE ACADEMY INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 1-14052 52-1938283
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation) File Number) Identification No.)
108 WHEEL ROAD, BEL AIR, MARYLAND 21015
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (410) 515-0788
NOT APPLICABLE
(Former name or former address, if changed since last report)
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ITEMS 1 AND 2. NOT APPLICABLE.
ITEM 3. BANKRUPTCY OR RECEIVERSHIP.
On January 8, 1998, the registrant filed a voluntary bankruptcy
petition under Title 11 of the United States Code in the United States
Bankruptcy Court for the District of Maryland (Case no. 98-50271-SD). Voluntary
petitions were also filed by the registrant's wholly-owned subsidiaries Kiddie
Academy Child Learning Centers, Inc., Kiddie Academy Franchising Systems, Inc.
and Kids Craft, Inc. Under Title 11 of the Bankruptcy Code, a debtor's estate
may be reorganized or liquidated for the benefit of its creditors and equity
holders. Attempts at collection of prepetition claims against the debtor are
stayed during the case and the debtor generally operates its business as a
debtor-in-possession until a plan of reorganization is confirmed.
Statements made or incorporated in this report include forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Exchange Act. Forward-looking statements include, without
limitation, statements containing the words "anticipates", "believes",
"expects", "intends", "future", and words of similar import which express
management's belief, expectations or intentions regarding the registrant's
future performance or future events or trends. Reliance should not be placed on
forward-looking statements because they involve known and unknown risks,
uncertainties and other factors, which may cause actual results, performance or
achievements of the registrant to differ materially from anticipated future
results, performance or achievements expressly or implied by such
forward-looking statements. In addition, the registrant undertakes no obligation
to publicly update or revise any forward-looking statement, whether as a result
of new information, future events or otherwise.
ITEM 4. NOT APPLICABLE.
ITEM 5. OTHER EVENTS.
In conjunction with the filing of the bankruptcy petition, the
registrant filed an emergency motion with the Bankruptcy Court requesting an
order approving the deregistration of the registrant's common stock under the
Securities Exchange Act of 1934, as amended (the "Exchange Act"). The Company
believes that it is no longer economically feasible to continue to incur the
costs associated with Exchange Act reporting given the Company's financial
difficulties. Deregistration of the Common Stock may have an adverse impact
on the ability of holders to sell the Common Stock.
ITEM 6. NOT APPLICABLE.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
Exhibit 99.1 Press Release
ITEMS 8 AND 9. NOT APPLICABLE.
2
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
KIDDIE ACADEMY INTERNATIONAL, INC.
Date: January 12, 1998 By: /s/ Michael J. Miller
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Michael J. Miller
President
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EXHIBIT INDEX
Exhibit
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99.1 Press Release
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RELEASE: Immediately
CONTACT: Michael Miller
George Miller
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Kiddie Academy
Headquarters
(410) 515-0788
KIDDIE ACADEMY SEEKS REORGANIZATION UNDER CHAPTER 11
BALTIMORE, MARYLAND - (January 8, 1998) - Kiddie Academy International,
Inc., Kiddie Academy Child Care Learning Centers, Inc., Kid's Craft, Inc., and
Kiddie Academy Franchising Systems, Inc., major providers of high quality,
uniform child care services to the public since 1981, today announced that they
had filed for protection under Chapter 11 in the U.S. Bankruptcy Court for the
District of Maryland. The Chapter 11 reorganization filings were principally
precipitated by significant debt obligations arising from the previous closing
of certain leased premises and financing limitations and the need to reorganize
and restructure corporate obligations, according to Michael Miller, Kiddie
Academy International's President.
Kiddie Academy International operates an integrated system of
education-based child care centers serving over four thousand (4,000) children
in eleven (11) U.S. states daily. Kiddie Academy International provides
centralized management and control for the Kiddie Academy affiliates. Kiddie
Academy Child Care Learning Centers, Inc. operates twelve (12) child care
centers. Kiddie Academy Franchising Systems, Inc., franchises the Kiddie Academy
Centers to thirty six (36) franchisees. Kid's Craft, Inc. provides school
supplies and equipment to all Kiddie Academy Centers.
<PAGE>
"We believe this filing is necessary and prudent, as it will ease the
companies' debt burden, increase liquidity, and will result in a revitalized
Kiddie Academy organization, which will then be able to focus on its highly
successful ability to provide quality child care," explained Miller.
"It is our intention to file a plan of reorganization as soon as
possible, and to move forward decisively under the Court's protection, while
continuing to provide quality services and products to children, as well as to
the Kiddie Academy centers and employees serving them. Once reorganized, we hope
to provide an even broader range of products and services. In the meantime, it
is our intention to meet our everyday obligations to employees, suppliers,
franchisees and shareholders, and to propose payment to them under our plan."
Miller said.
Kiddie Academy will continue to operate its existing businesses, and
management will remain in place. Operations will continue to be run from Kiddie
Academy's corporate headquarters in Bel Air, Maryland. Kiddie Academy has
engaged the services of Paul M. Nussbaum, Esq. and Whiteford, Taylor & Preston
L.L.P. to represent the companies during the reorganization process.
