Culver City, Calif.-based Small World Toys filed for bankruptcy protection under Chapter 11 of the U.S. bankruptcy code on Aug. 3. In a hearing held in Los Angeles, the toy manufacturer was granted approval to borrow up to $2.6 million in debtor-in-possession financing from its senior creditor, Laurus Master Funds Ltd.

On the heels of the bankruptcy filing, Small World also announced the resignation of CEO Debra Fine and the appointment of Charles T. Moffitt as her replacement. Fine will continue as a director of Small World Kids, a related company.

Moffitt is the principal of C.T. Moffitt & Co., a Beverly Hills, Calif., turnaround consulting firm. He was most recently CEO of Intervisual Books, a children's book publisher sold in a highly successful bankruptcy auction in 2006.

Although the direction taken by new management has not yet been determined, Moffitt reports, the firm will continue through its investment bankers, Focal Point Partners, to seek new investors. That process, begun several months ago, has already attracted several interested parties.