ARLINGTON HEIGHTS, Ill. Children's toy and leisure product manufacturer and marketer Hedstrom Corporation discontinued operations today and laid off more than 800 employees, including about 350 employees in Bedford County.

The Illinois-based company says it plans to file for Chapter Eleven bankruptcy protection next week.

In a written statement, C-E-O B-B Tuley says that the steps taken today were unavoidable. Without the availability of additional funding, he says the company doesn't have the resources to pursue a turnaround strategy.

A company spokeswoman says a handful of employees at each of Hedstrom's four U-S and two Canadian facilities will remain to shut down the company.

The company says competition from offshore manufacturing and an increase in raw material and energy costs eroded its profit margins.