Funko Pop to Trash $30 Million Worth of Merchandise; this happens with the company
Mexico City /
The Funko Pop They have been one of the favorite brands for collectors, especially for those who are fans of superheroes or animated series. However, the company is experiencing financial problems due to the decreased demand for toys and a inventory surplus.
The company reported in a press release – issued last Wednesday and taken up by CNN– who will take drastic measures, one of them is destroying your excess inventorywhich would mean a loss of up to 30 million dollars.
According to Funko’s fourth quarter earnings report, last year they had to rent extra space in a warehouse solely to house the backlog of an entire catalog of figures ranging from the popular Baby Yoda even the musician Eddie Van Halen.
What’s Happening With Funko Pop
In 2022, the company had around 246.4 million in figures, which represents a 48 percent more than in 2021. Faced with this situation, they made the decision to get rid of part of that surplus in the first half of 2023.
With this it is intended “reduce fulfillment costs by managing inventory levels to align with the operating capacity of our distribution center“, they point out in the statement, in which they emphasize that they hope that”this results in an amortization in the first half of 2023 of approximately 30 to 36 million”.
According to the data, the producer in storage right now is worth less than the cost of maintaining it, so they are wasting an investment of at least 30 million.
The aforementioned medium indicated that in a call with investors, the company’s executive director, Brian Mariotti, indicated that The Arizona distribution center was packed with Funkos, for which the company was forced to rent extra storage containers; the cost of it, he claimed, was losing money at an accelerating rate.