Toymakers say there is 'widespread panic' following Toys R Us bankruptcy (The Washington Post)
Within hours of Toys R Us’s bankruptcy filing last week, the maker of Max Tow Truck and Animal Babies Nursery sounded a financial alarm of its own: Jakks Pacific, the company said, expected to swing to a loss this year as a result of the mega-retailer’s bankruptcy.
Toys R Us owes $14.06 million to Jakks, which last year posted a profit of $1.2 million, making the California-based toy supplier one of more than 100,000 creditors sideswiped by the toy chain’s bankruptcy in the run-up to the all-important holiday season. In total, Toys R Us owes $7.5 billion to a group that includes virtually every major toymaker in the country: Mattel (owed $136 million), Hasbro ($59 million), Spin Master ($33 million), Lego ($32 million), Radio Flyer ($12 million), Crayola ($2.6 million).