Lone Star Baby & Kids Acquires USA Baby

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Lone Star Baby & Kids has just acquired the Intellectual Property and certain assets of USA Baby, Inc. through an Asset Purchase Agreement with Commerce Capital L.P. (CCLP).

Nearly one year ago USA Baby, Inc. was forced into an Involuntary Bankruptcy. This past July, CCLP the primary secured creditor acquired the Intellectual Property and assets of USA Baby through a foreclosure sale. Details of the Lone Star Baby & Kids acquisition were not immediately available.

Michael J. Schaul, President of Lone Star Baby & Kids stated, "We are extremely pleased with the outcome today and look forward to growing both the USA Baby and Lone Star Baby & Kids Brand nationwide through franchising." Schaul added, "There are approximately thirty five (35) stores nationwide currently operating within the USA Baby Franchise System. We plan to offer these stores the opportunity to join our Franchise System and return the USA Baby Brand back to the predominant juvenile specialty store chain it once was."

When contacted Beth Jenkins a twenty (20) year franchisee of USA Baby in Overland Park, Kansas said, "It has been a long tough road these last few years, but I am very optimistic with the systems and programs that Schaul's franchise has in place that will immediately improve my overall business."

Bob Paffenroth also a long time USA Baby franchisee in Brookfield Wisconsin added, "I look forward to joining Schaul's new franchise organization and the future growth and support that it will provide for my business in the years ahead."

Jeff Waring who has two (2) USA Baby stores in the Houston area stated, "Schaul has helped my business numerous times over the past eight years. He has proven himself to be a strong leader in our industry and I am very eager to join his new franchise organization."

Schaul who left the USA Baby Franchise System in 2007 was its largest franchisee at the time. Schaul currently owns three (3) Lone Star Baby & Kids stores operating in the Dallas / Fort Worth Metroplex. More information on the company can be found at http://www.LoneStarBaby.com.

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Michael Schaul
Lone Star Baby & Kids
972-335-6310 ext. 101
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