PNC Bank said in a legal notice published Thursday that it will sell K’nex, a Hatfield maker of construction toys, at auction on Jan. 29.
The notice said PNC already has a $21 million offer for the assets of K’nex. The assets are collateral for unspecified loans to the privately-held Montgomery County company.
K’nex, which was founded in 1992 as an offshoot of an injection molding company, did not respond to a request for comment about the circumstances that led to the planned sale. The company also owns classic toy brands Lincoln Logs and Tinkertoy.
A Cherry Hill printing company last month filed a complaint against K’nex in Superior Court of New Jersey alleging that K’nex was refusing to pay $90,530 in bills dating to last August.
K’Nex brought on outside investors Cathay Capital North America in 2016 as part of a plan to assist the founding Glickman family with a successful generational transition plan. The Cathay investment was also supposed to help K’nex expand globally by distributing in China, Europe, and other parts of the world.