Toy store caught in collapsed SVB offers parents 40% off its merchandise to stay afloat
A New York-based toy store has slashed its prices in a desperate attempt to stay afloat after the collapse of the Silicon Valley bank.
The Camp toy store emailed customers on Friday, urging them to use the tongue-in-cheek discount code “BANKRUN” to save 40 percent on their merchandise.
The company – which has worked with several high-profile celebrities including Drew Barrymore and Neil Patrick Harris – said much of its money was tied up in SVB, which has become the largest bank in the US to fail since the 2008 financial crisis.
On Friday, it asked customers to make purchases that would be processed through rival bank Chase.
“Unfortunately, we had most of our company’s cash assets with a bank that just collapsed. I’m sure you’ve heard the news,” co-founder Ben Kaufman said in an email.
New York toy store Camp, pictured, has reduced its prices by 40 percent to deal with the fallout from its Silicon Valley Bank
An ad on the store’s Instagram account urges customers to use the tongue-in-cheek “Bankrun” discount code.
Co-founder Ben Kaufman also sent emails to customers urging them to take advantage of the sale
‘All sales from this point forward will be paid into Chase, allowing us to generate the money needed to continue operations so we can continue to provide unforgettable family memories.’
Customers were told they could either take advantage of the discount or pay full price to further boost business.
Kaufman, who was previously Buzzfeed’s chief marketing officer, added it would be “appreciated” if they chose the latter option.
He signed the post: “Upload cheap toys, birthday gifts, etc – while helping CAMP. Everyone wins?’
The discount proved so popular that the site temporarily crashed on Friday night due to high demand.
“Our website has crashed from all the support, thanks everyone,” read a post on the Instagram page.
Camp is a venture capital backed company and opened its first store in 2018. It is an adventure toy store that offers a range of children’s birthday parties, scavenger hunts and other events.
It has also partnered with a number of celebrities at events including LeBron James, Drew Barrymore and Neil Patrick Harris.
In 2020, Barrymore performed a blindfolded makeup challenge for a toy store and Walmart event.
Its popularity skyrocketed during the pandemic as it hosted over 50,000 virtual birthday parties and sold more than 500,000 activity books.
Concerned customers asked if the panic sale spelled the death knell for the beloved toy store – but staff were quick to reassure them they were “riding” the wave of the SVB collapse.
In response to a comment, the company said, “Camp anticipates it will be around for the long haul.
“We’re confident we’ll ride that wave and hope to get back to running at a normal pace next week.”
Police visited the bank’s California headquarters on Friday after angry tech entrepreneurs showed up at its door
SVP CEO Greg Becker successfully lobbied Congress in 2015 to reduce scrutiny of his company
It comes after panic rocked the financial sector on Friday following the sudden collapse of the SVB.
The bank was sensationally shut down by the California Department of Financial Protection and Innovation, which placed its remaining assets under the control of the Federal Deposit Insurance Corporation.
The crisis was sparked after the company announced a $1.8 billion loss at its bold holdings this week.
CEO Greg Becker urged investors to “stay calm” and not “panic” in a conference call Thursday.
But it prompted nervous customers to withdraw large balances to avoid losses.
Deposits up to $250,000 are protected by federal law — but anyone with larger sums tied up now faces losing their money.
Dozens of customers were filmed yesterday queuing outside a branch to withdraw the cash they needed to get out before the fallout.
Meanwhile, police were called to the bank’s headquarters after a group of disgruntled tech founders showed up outside.
But it’s ordinary families who will suffer most from the crisis, as many small business startups and online sellers are left in limbo by the collapse.
Online marketplace Etsy was forced to freeze some transactions on its site, leaving sellers struggling to pay their bills.
On Friday, Etsy was forced to email its sellers notifying their payments were frozen because the company relied on the bank for some of their accounts.
Sellers said the freeze meant they couldn’t pay their mortgages and worried about how to support their families.
Becker has also come under fire after it was revealed he successfully lobbied Congress in 2015 to reduce scrutiny of companies like his.
He then insisted that “enhanced prudential standards” should be lifted “given the low risk profile of our activities”.
It was also revealed that two weeks before the bank collapsed, Becker had sold $3.57 million worth of stock in a pre-planned, automated sell-off — and the CFO dropped $575,000 on the same day.
Becker sold 12,451 shares on February 27 at an average price of $287.42 each.
The price fell to just $39.49 premarket on Friday before the Federal Deposit Insurance Corporation (FDIC) seized the bank’s assets. It closed at $15.
Federal records obtained by The Lever showed that Becker spent more than half a million dollars on federal lobbying in 2015-18.
The money was well invested: the SVB received the desired relaxation regulation.
Becker told Congress about “SVB’s deep understanding of the markets it serves and our strong risk management practices.
Source: | This article originally belongs to Dailymail.co.uk
https://www.soundhealthandlastingwealth.com/celebrity/toyshop-tied-up-in-collapsed-svb-offers-parents-40-off-its-goods-in-bid-to-stay-afloat/ Toy store caught in collapsed SVB offers parents 40% off its merchandise to stay afloat