The commercial court at Lons-le-Saunier in France has given its approval for Simba-Dickie to acquire certain assets after the current owner, MGA Entertainment, failed to produce plans for a turnaround.
Simba-Dickie aims to keep only 400 of the nearly 1,100-strong French workforce. It will retain plants at Arinthod, Morians, Groissiat and Belllignat and the corporate headquarters.
Smoby filed for court bankruptcy protection in March 2007 in order to restructure its debt of around €270m. It subsequently reached a takeover deal with MGA, preferring the US group's offer to rival proposals from Chinese toy maker Cornerstone and Smoby's creditors.