The company Funko, known for its collectible figures of characters from popular culture, is facing financial difficulties and is preparing to throw away hundreds of thousands of its figures. The company announced during a recent earnings call that it intends to remove a large amount of inventory to reduce fulfillment costs.
In a statement, the company indicated that “inventory at the end of the year totaled $246.4 million, an increase of 48% compared to the previous year.” Figures include “inventory the Company intends to phase out 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 to $36 million.”
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The company’s CEO, Brian Mariotti, revealed during a call with investors that Funko’s warehouses are packed with miniature figures of iconic characters from popular culture. The new distribution center in Arizona is so full that the company has been losing money renting containers to store all the excess inventory.
And that’s not all, since in addition to the elimination of inventory, the company also announced that it would lay off 10% of its staff. This comes after Funko’s share price plunged last November when the company lowered its financial outlook for the year.
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