The bankruptcy of Toys R Us in September 2017 and closure of hundreds of the toy retailer’s stores dealt a heavy blow to the nation’s biggest toymakers.
Toymakers’ sales suffered from the loss of a huge customer
Business Insider/Jessica Tyler
The bankruptcy of Toys R Us meant the nation’s toymakers lost one of their biggest customers.
Hasbro’s sales plunged 12% last year as it lost out on “hundreds of millions of dollars in revenue from Toys R Us,” CEO Brian Goldner said on the group’s fourth-quarter earnings call.
The maker of Transformers, Nerf, and My Little Pony isn’t expected to restore its revenue to pre-Toys R Us levels until next year. However, its pending takeover of Entertainment One – the TV-and-movie studio and distributor behind Peppa Pig – could accelerate its recovery.
Similarly, Mattel’s revenue dropped 11% in 2017 and a further 8% in 2018. Sales at the maker of Barbie, Hot Wheels, and Fisher-Price aren’t expected to fully recover until 2022.
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