I've had a few of these wagons before but it's been a while. I've got the bottoms folded forward but it's the small passenger seat back that won't move. The catch must be stuck. I can jiggle that rod with the black knob but it won't release the catch. The other side is find but like you said the cargo cover prevents it from going all the way down. I'll try spraying WD40 into the hole where the rod is.