With the great Funko crisis, comic shops should start selling comics instead of the famous bobbleheads
Funko is the company responsible for creating the popular big-headed toys, that is, the Funko Pop. The success that the curious figures have had is truly amazing, but that would have ended, since the company plans to destroy more than 30 million dollars of products for Excess inventory after suffering heavy losses in 2022.
The founder and new CEO of Funko, Brian Mariottishared during a telephone meeting the financial data of the past fiscal year, showing the poor company performance in 2022. “A combination of macroeconomic factors and issues specific to Funko have disrupted our financial and operational performance to an unacceptable degree,” Mariotti said on the call.
What measures will the company take?
As part of the actions the company will take after the poor financial results, Funko will reduce its workforce by 10% and destroy between 30 and 36 million dollars in excess inventory. Below, we show you the press release that the company shared about these results:
“Year-end inventory was $246.4 million, an increase of 48% compared to the prior year. This includes inventory that the company intends to dispose of in the first half of 2023 to reduce compliance costs by managing inventory levels to align with our distribution center operating capacity. This is expected to result in a writedown in the first half of 2023 of approximately $30-36 million.”
Funko’s losses in 2022 are largely due to its distribution center in Buckeye, Arizona. In the conference it was mentioned that this distribution center has a brutal number of figures in its inventory, so the rental prices for storing products that in theory can no longer enter the warehouse rose during the fourth quarter. However, the company will continue to produce the popular figures with big heads, so you can expect more funkos from the franchises you love, be it the Marvel Cinematic Universe, the DCU o Star Wars.
