Warren Kaplan, principal restructuring officer of Action Products International, Inc. has announced that the company is going to liquidate its failing toy business and “seek a new venture.” In a press release Kaplan explained that the company has experienced enormous financial problems that included falling sales, sales representatives that were not paid commission, phone bills that were not paid, as well as the sudden resignations of the CFO/COO and CEO/chairman. The company has a tax loss in excess of $11.5 million. Kaplan says in order to salvage the company’s value for shareholders, management will seek a new venture.
Month: December 2009
Haywire Group Develops Guinness World Records Games
The Haywire Group will launch a new line of games and puzzles based on the Guinness World Records book at the 2010 Toy Fair in New York City. The board game will include elements typical in Haywire products such as trivia questions, learning activities, and physical challenges that require players to make and break their own records. Haywire will also release a travel game and a 300-piece puzzle that will allow users to decode records on the puzzle. All products will be available for sale in the U.S. and Canada after the Toy Fair launch in February.
California Consumer Group Alleges Zhu Zhu Pets are Hazardous
A consumer group based in California, Good Guide, is alleging that one of the Zhu Zhu pet hamsters has a high level of a chemical called antimony, which the group claims can lead to cancer, reproductive health, and other health hazards. The group says that the Zhu Zhu pet had 93 parts per million of antimony in the fur, and 103 parts in the nose, while the federal limit is 60 parts per million. Cepia, LLC, the manufacturer for Zhu Zhu Pets released a statement saying its hamsters are “absolutely safe and has passed the most rigorous testing in the toy industry for consumer health and safety.”
Hasbro Signs Licensing Deal for Sesame Street Toys
Hasbro, Inc. has been granted the rights to make and market toys and games based on Sesame Street characters, such as Elmo, Big Bird, and Cookie Monster. The agreement takes the licensing rights away from Mattel’s Fisher-Price brand, who holds the rights until 2010. Hasbro will start manufacturing Sesame Street products in 2011, which is the same year that the first products will launch in stores. The Hasbro-Sesame Street agreement covers all Sesame Street toys and will last 10 years.
JAKKS to Release More Taylor Swift Toys
JAKKS Pacific, Inc. is expanding its Taylor Swift fashion and doll lines to include two new doll collections and other toys that will release in stores nationwide next spring. The Taylor Swift Performance Collection Doll Assortment will feature dolls in the Grammy-nominated singer’s likeness that plays 30-second highlights of Swift’s hit songs and are fashioned in clothes from the performer’s music videos. The Taylor Swift Fashion Collection Doll Assortment features dolls in the singer’s outfits from award shows, TV appearances, and concerts.
F.A.B./Starpoint Signs Deal for MGA’s Doll Lines
F.A.B./Starpoint has inked a licensing deal with MGA Entertainment for the Moxie Girlz and BFC, Ink. doll brands. As a part of the agreements, which take effect immediately, F.A.B./Starpoint will develop a line of stationery, backpacks, school supplies, and lunch kits that will be launched in time for back-to-school 2010.
The Toy Book’s Toy Report 12/01/09
Aurora World Files Copyright Infringement Lawsuit Against Ty
Aurora World, Inc. has filed a lawsuit against Ty, Inc. for copyright infringement regarding Aurora’s plush line YooHoo & Friends and Ty’s Beanie Boos. The lawsuit, which is filed in federal court, also claims four other violations based on the Lanham Act, California Business and Professions Code, and common law for misappropriation and unfair competition.
Bandai Appointed as Master Toy Licensee for Pocoyo
ITV Studios Global Entertainment and Zinkia have signed a master-toy licensing agreement with Bandai for the preschool series Pocoyo. The deal is for the U.S. and Canada. Toy products by Bandai will be available to U.S. and Canadian shoppers starting fall 2010. Bandai also currently operates as the brand’s European master toy licensee.
CPLG Appointed Licensing Agent for Tween Fashion Brand
Cookie Jar’s licensing division, Copyright Promotions Licensing Group (CPLG), has been appointed as the exclusive international licensing agent for tween girl fashion brand Bobby Jack. CPLG will create and oversee a licensing program for the brand that will expand art programs and exclusive designs for partners and retailers, as well as introduce new categories such as HBA, fashion accessories, toys, games, and publishing.