Annalee Dolls petitions to reorganize debt, intends to keep making, selling making iconic figures

MEREDITH — Earlier this year, one of the town’s most iconic businesses filed for bankruptcy. However, an attorney for Annalee Dolls said the process is intended to put the company on more stable footing, so that it may stay in business.

Annalee Dolls, maker of decorative felt characters, filed for Chapter 11 bankruptcy proceedings on April 11 of this year.

“We expect Annalee Dolls to remain in Meredith, and continue to do business, that is at least the goal,” said William Gannon, the attorney representing Annalee.

According to the petition filed in New Hampshire Bankruptcy Court, Annalee Dolls LLC, located at 339 Daniel Webster Hwy, has fewer than 50 creditors, owes between $1 million and $10 million, and has assets in the same value range.

Gannon said he intends to seek a resolution in which the creditors will have their debts at least partially addressed.

“We expect they are going to be paid something, we do not expect that they will be paid in full, at least for the most part,” Gannon said.

Annalee Dolls celebrated its 90th anniversary in 2024. The company was founded by Annalee Thorndike, who began creating dolls by painting faces onto felt fabric in her childhood bedroom. Her products became collected worldwide, and at its height, the company employed more than 300 people, who worked in a campus of several large buildings.

Demand for the posable wire-and-felt dolls didn’t maintain that height, though. In 2008, the company downsized and divested of much of its real estate. In 2016, a partnership headed by Andrew Button took ownership. Button is still listed as owner in the bankruptcy documents.

Gannon said the bankruptcy process moves “very slowly” and said he hopes to have a reorganization plan confirmed by a judge within four months — though the process could take longer.

“So far, we seem to have people working with us cooperatively and productively, and that usually produces a good result,” Gannon said. “Now, good is relative, it’s never perfect,” but in his mind “good” would mean the company is able to continue to operate, and to do so in Meredith.

In order for that to happen, Gannon said, depends on the court approving a financing arrangement to allow Annalee to borrow about $1.75 million, “to buy inventory and factory receivables to speed up cash flow.”

An employee at the Annalee Dolls retail store declined to offer comment on Thursday, instead referring inquiries to an email address which did not immediately yield a response.