Jakks Pacific Posts $17.6 Million Q3 Loss
Jakks Pacific swung to a $17.6 million net loss in Q3 ended Sept. 30, as it took a $19.4 million pre-tax charge tied to Toys R Us’ bankruptcy filing.
Q3 net sales fell 13.3% to $262.4 million due partly to halting shipments to Toys R Us after it filed for bankruptcy in September. Jakks has since started “working closely” with Toys R Us for the holiday selling season, CEO Stephen Berman said in a statement. A bankruptcy court judge Tuesday approved $3.1 billion in debtor-in-possession financing for the chain (Inside Licensing Oct. 25).
Jakks also took a $7 million write-off on its investment in DreamPlay, a “toys to life” joint venture it launched with Los Angeles billionaire Patrick Soon-Shiong’s Nantworks in 2013. The technology was designed to work via an app that could be downloaded to mobile devices. When a device’s camera was trained on a toy contained DreamPlay technology, preset animations were triggered. Among the initial partners was Disney. The joint venture was renewed in 2015, but the agreement expired last month.
Jakks Pacific, Joel Bennett, Chief Financial Officer, 310-455-6210