The US company, whose Pleo range was distributed in the UK by Vivid Imaginations, has filed for liquidation of its assets and has laid off all of its staff. A creditors meeting is being held on May 21st.
The firm was the brainchild of Caleb Chung, best known as the creator of Furby.
In the bankruptcy filing, Ugobe said it had assets of $1.6 million, including $1.5 million in machinery to make Pleo in Hong Kong, and liabilities of $3.6 million.
Ugobe said it also owes Chung $353,500 in unpaid royalties.