Over $30 million of Funko Pops are being thrown away
Funko Pops aren't funkon around when it comes to stock.
In fact - the company want to throw away over $30 million figurines.
Toy models of cultural icons such as Harry Potter and Darth Vader are set to be dumped in a bid to make the company that produces them more efficient.
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Funko listed ballooning inventory and limited warehouse capacity as reasons behind making such a dramatic move.
According to a recent press release, there was an inventory increase of 48 percent from 2022, which is valued at a whopping $246.4 million.
The company now 'intends to eliminate' surplus stock to 'reduce fulfillment costs by managing inventory levels to align with the operating capacity of our distribution center'.
It will cost them 'approximately $30 to $36 million'.
"During the fourth quarter and in early 2023, we have made progress in addressing operational issues that impacted our results in the second half of 2022," CEO Brian Mariotti said in a statement. "We have strengthened our executive and operational management team and have taken significant steps to improve our operating efficiency.
"We are gratified that the Funko brands continue to see strong consumer demand from our incredibly loyal and resilient global fanbase, as demonstrated by 37% direct-to-consumer growth and strong sell-through in the fourth quarter."
Juli Lennett, vice president and industry advisor for NPD's U.S. toys practice has been 'surprised' by the move.
"I was a bit surprised because the collectible market is one of the big stories for 2022. Collectibles were up 24%," she told NPR.
"That'll include any other types of action figure collectibles as well.
"But Funko, of course, is the biggest player in that space."
She expects that fans will still be interested in collectables for the years to come, adding: "Adults are going to continue to be interested in collectibles.
"There are too many new buyers that are buying into these categories and it's going to take some time before they all go away."
During the coronavirus pandemic, you might remember when Funko unveiled a line of figurines that look like healthcare workers.
"In honour of the first responders on the front lines of the COVID-19 pandemic, Funko is excited to announce the new line of Pop! Heroes to commemorate the nurses and doctors who are giving their all to help treat patients," the company said in a statement.
Topics: World News
Anish Vij