It seems surreal writing a Blog about the toy market on such a momentous day, when all the talk will be dominated by the election result which saw a Tory wipeout across the UK. In 1997, the last time Labour toppled a Conservative government, The Charlatans and The Spice Girls topped the album charts. Anita had got up in the middle of the night to feed our youngest daughter (now 27) and woke me up so we could watch the carnage unfold.
We didn’t manage that this time round, as we had flown home from holiday over the previous night, so catching up on some sleep was more important than watching some unpleasant people getting the comeuppance they so richly deserved (hard to choose which was funnier – Liz Truss or Jacob Rees-Mogg). But the feeling this morning is very similar to that day in ’97: that we can finally move forward with a clean slate and fresh optimism. If the markets react in the way I believe they will (they love certainty and clarity, and this was a resounding victory), the prospects for fiscal conditions improving in the short term – albeit modestly – look good. Consumers and retailers of all political persuasions will welcome that with open arms.
And perhaps we can finally put to bed the reputation that Brits make the worst voting decisions, especially when looking at what might happen in France (and whisper it quietly, the USA…).
So, on to what’s been happening in the toy market this week. In perhaps the most surprising story of the week, Basic Fun! has filed for Chapter 11 bankruptcy protection in the US. Given the tough trading conditions, many people have been quietly saying they’ve been amazed that there haven’t been more high profile casualties in the global toy market over the past year or so – although I’m not sure many expected Basic Fun! to find itself in this situation.
However, there’s a far more constructive element to the story than the headline infers, if you listen to Basic Fun! CEO Jay Foreman. He has suggested that the move should be viewed as an “opportunity for growth”, giving the company a chance to put its house in order. Taking the ‘This Ole’ House’ analogy a step further, Jay suggested the company is more of a fixer-upper than in need of knocking down and starting all over again. He also claimed to be disappointed that this was the only route to reorganisation, stating “the fact that this process is done through a bankruptcy court is unfortunate when you are not bankrupt, and we are not. We are solvent, capitalised and open for business.”
Read the rest here.
