Case DHS Doc 204 Filed 08/01/14 Entered 08/01/14 10:54:42 Desc Main Document Page 1 of 4

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1 Document Page 1 of 4 UNITED STATES DEPARTMENT OF JUSTICE OFFICE OF THE UNITED STATES TRUSTEE ROBERTA A. DeANGELIS UNITED STATES TRUSTEE, REGION 3 Peter J. D Auria, Esq. (PD 3709) One Newark Center, Suite 2100 Newark, NJ Telephone (973) Fax (973) UNITED STATES BANKRUPTCY COURT DISTRICT OF NEW JERSEY In re Chapter 11 Kid Brands, Inc., et al., 1 Case No (DHS) Jointly Administered Debtors. Hearing Date The Honorable Donald H. Steckroth APPLICATION BY THE UNITED STATES TRUSTEE FOR ORDER SHORTENING TIME PERIOD AND LIMITING NOTICE UNDER FED. R. BANKR. P. 9006(C)(1) ON THE UNITED STATES TRUSTEE S MOTION FOR AN ORDER DIRECTING THE APPOINTMENT OF A CONSUMER PRIVACY OMBUDSMAN PURSUANT TO 11 U.S.C. 363(b)(1) AND 332 THE UNITED STATES TRUSTEE, by and through her counsel, represents 1. On June 18, 2014, (the Petition Date ), Kid Brands, Inc., et al., (collectively, the Debtors ), commenced separate cases under Chapter 11 of title 11 of the United States Code, (the Bankruptcy Code ). The Debtors have continued to manage their affairs as debtors in possession since the Petition Date. 1 The Debtors in these jointly administered cases are Kid Brands, Inc. ( (DHS)), Kids Line, LLC ( (DHS)); Sassy, Inc. ( (DHS)); I&J Holdco, Inc. ( (DHS)); LaJobi, Inc., ( (DHS)); CoCaLo, Inc. ( (DHS)); and RB Trademark Holdco, LLC ( (DHS)).

2 Document Page 2 of 4 2. According to the Declaration in Support of Chapter 11 Petitions and First Day Pleadings by Glenn R. Langberg, the Debtors CRO (the Langberg Declaration ) (docket entry 2), the Company 2 is a designer, importer, marketer, and distributor of infant and juvenile consumer products. Langberg Declaration, 8. The Company designs, manufacutres (through third parties), and markets products in a number of categories including infant bedding and related nursery accessories and décor; nursery appliances; diaper bags; and bath/spa products (Kids Line and CoCaLo ); nursery furniture and related products (LaJobi ); developmental toys and feeding products; and bath and baby care items with features that address the various stages of an infant s early years, including the Kokopax line of baby gear products (Sassy ). Id. 3. On July 24, 2014, the Debtors filed the Motion for Entry of an Order (I) Authorizing the Sale of Certain Assets of Debtors Kids Line, LLC and CoCaLo, Inc. Free and Clear of Liens, Claims and Encumbrances, Subject to Higher and Better Offers and (II) Granting Related Relief (the Kids Line / CoCaLo Sale Motion ) (docket entry 175). Pursuant to a docket entry dated July 25, 2014, the Court scheduled a hearing on August 19, 2014 at 200 p.m. to consider approval of the sale proposed in the Kids Line / CoCaLo Sale Motion. 4. On July 28, 2014, the Debtors filed the Motion of the Debtors for Entry of an Order (I) Authroizing the Sale of Substantially all Assets of Debtor Sassy, Inc. And Transfer Certain Assets of Certain Other Debtors Free and Clear of Liens, Claims and Encumbrances, Subject to Higher and Better Offers, (II) Authorizing the Assumption and Assignment of Certain Executory Contracts and Unexpired Leases And/Or Transfer of Designation Rights, (III) Extending the Deadline to assume or Reject Unexpired Leases of NBon-Residential Real 2 This term having the meaning as ascribed in the Langberg Declaration.

3 Document Page 3 of 4 Property and (IV) Granting Related Relief (the Sassy Sale Motion )(docket entry 185). On that same date the Court entered an Order scheduling an expedited hearing on August 5, 2014 at 1000 a.m. to consider approval of the sale proposed in the Sassy Sale Motion (docket entry 187). 5. Neither the Kids Line / CoCaLo Sale Motion nor the Sassy Sale Motion address the issues of the sale or lease of individuals personally identifiable information nor the terms of the Debtors privacy policy. Additionally, neither the Kids Line / CoCalo Sale Motion nor the Sassy Sale Motion address any request for the appointment of a consumer privacy ombudsman. 6. With regard to the Sassy Sale Motion, counsel to the Debtors informs that the Debtors do have certain information of consumers, including names, and other various forms of contact information (phone numbers and/or addresses). Additionally, such information is being transferred to the Purchaser as identified in the Sassy Sale Motion (the Sassy Purchaser ). 7. With regard to the Kids Line / CocaLo Sale Motion, information provided to date is less clear. However, pursuant to the sale Agreement as identified in the Kids Line / CocaLo Sale Motion (the Kids Line / CoCaLo APA ), the sale of assets includes the sale of certain internet media accounts, and associated web pages. See, Kids Line / CoCaLo APA 2.1(b)(iii). Such internet media accounts include twitter, Facebook, and Pinterest internet accounts. To the extent such internet accounts are utilized to communicate with consumers, and there is consumer participation on such accounts, there is attendant personal identifiable information in the Debtors possession, and such information is being sold via the Kids Line / CocaLo Sale Motion. 8. The Debtors privacy policy, as published on the Debtors website, expressly communicates to consumers that with regard to their PII, the Debtors will never sell [their] information. Emphasis added.

4 Document Page 4 of 4 9. The sale of the Debtors customers personal information is not consistent with the Debtors privacy policy, therefore, a consumer privacy ombudsman must be appointed under sections 363(b)(1) and 332 of the Bankruptcy Code. 10. In light of the timing of the pending sale motions, this office is requesting an expedited hearing on the Motion of the United States Trustee for the Appointment of a Consumer Privacy Ombudsman. This Office further requests that the Court limit notice of this motion to (i) Debtor s Counsel, (ii) counsel to the Official Committee of Unsecured Creditors, (iii) counsel to Salus Capital Partners, LLC, and (iv) parties who have filed Notices of Appearance in this matter who receive ECF notice. 11. Reduction of the time period in question is not prohibited under Federal Rule of Bankruptcy Procedure 9006(c) and the Rules listed therein. WHEREFORE, the United States Trustee requests entry of the order shortening time submitted herewith. Respectfully submitted, ROBERTA A. DeANGELIS UNITED STATES TRUSTEE REGION 3 DATED August 1, 2014 By /s/ Peter J. D Auria Peter J. D Auria Trial Attorney

5 Case DHS Doc Filed 08/01/14 Entered 08/01/ Desc UNITED STATES BANKRUPTCY COURT Proposed Order Page 1 of 3 DISTRICT OF NEW JERSEY Caption in Compliance with D.N.J. LBR (c) In Re Case No. Adv. No. Hearing Date Judge ORDER SHORTENING TIME PERIOD FOR NOTICE AND SETTING HEARING The relief set forth on the following pages, numbered two (2) and three (3), is hereby ORDERED.

6 Case DHS Doc Filed 08/01/14 Entered 08/01/ Desc Proposed Order Page 2 of 3 Upon consideration of the application of for notice under Fed. R. Bankr. P. 9006(c)(1), and for cause shown, it is ORDERED as follows 1. The time period required by Local Bankruptcy Rule or Fed. R. Bankr. P or other rule for notice of hearing on is hereby shortened as set forth herein. 2. Hearing shall be conducted on the aforesaid motion/application on, 20 at.m. in the United States Bankruptcy Court, Courtroom No.. 3. True copies of this order, the application for it, and the moving papers shall be served upon by fax, overnight mail, , hand delivery, regular mail, and within day(s) of the date hereof, or on the same date as the order. parties. 4. Immediate telephone notice of entry of this order shall also be given to said

7 Case DHS Doc Filed 08/01/14 Entered 08/01/ Desc Proposed Order Page 3 of 3 5. Any objections to said motion/application shall be filed and served so as to be received no later than may be presented at the hearing. 6. Court appearances will be required to prosecute said motion/application and any objections. Any objector may appear by telephone at the hearing. The hearing will be held by telephone conference call, to be arranged by the applicant. rev.6/1/06.jml