4 ways Hasbro, Mattel, and other toy companies were whacked by Toys R Us' bankruptcy

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The closure of Toys R Us stores hammered toymakers' sales and profits, shrunk their distribution, and landed them with debt.

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'sThe 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 — couldSimilarly, Mattel's revenue dropped 11% in 2017 and a further 8% in 2018.

Spin Master, which makes Hatchimals and Paw Patrol toys, suffered an especially sharp slowdown. After surging more than 30% in 2016 and 2017, its sales slowed to just 5% in 2018, and are set to rise just 1% this year. Jakks Pacific — which makes Harry Potter, Incredibles 2, and Nintendo toys — has also suffered. Its revenue shrunk 13% in 2017, and fell a further 7% in 2018.

 

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