ToyTime Forced into Bankruptcy Court

Mattel Inc., the world’s leading toy maker, and Microsoft Corp. forced foundering start-up Internet toy-seller ToyTime Inc. into Bankruptcy Court to seek payment of trade debt. In an involuntary Chapter 11 petition filed in Bankruptcy Court in Wilmington, Del., El Segundo-based Mattel, Microsoft, Grey Advertising Inc. of New York, GuideStar Direct Corp. of Irvine and Mancan Inc. of Massillon, Ohio, say ToyTime owes them about $3 million in unpaid bills. Torrance-based ToyTime, which marketed toys as Toytime.com and infant products as Babytime.com, closed its Web sites in May when faced with investor apathy and competition. Last month, ToyTime asked potential buyers to send e-mail to Bidstoytime.com. “Mattel is owed by ToyTime the [amount] of $1.15 million on account of goods sold by Mattel,” and the money is more than three months overdue, Mattel said in court papers. In the petition, Microsoft seeks more than $894,000, Grey more than $351,000, GuideStar more than $304,000 and Mancan, doing business as Manpower, more than $201,000. ToyTime officials couldn’t immediately be reached for comment.