Toy manufacturing companies such as
Hasbro and
Mattel are already starting to feel the negative effects following
yesterday's news that toy retailer Toys R' Us was looking at taking steps to liquidate it's U.S. operations due to it's current financial woes. According to
Reuters, both companies took a hit in the stock market this morning as shareholders brace for what is to come.
"Mattel’s shares fell 6 percent to $14.96, while those of Hasbro dipped nearly 3 percent to $90.75 in early trading. Jakks Pacific Inc (JAKK.O) was down 1 percent at $2.33."
Besides likely never getting back most the money Toys R' Us currently owes these companies, it is being estimated that if the retailer shut down completely (worse case scenario), it would reduce sales in 2018 for each company by an estimated 10%. This would result in a 10% decrease in earnings for each of the manufactures.
