Mattel took over the reigns from Hasbro for the Jurassic World toyline in mid-2017. For the most part this has been a move loved by fans and the quality of toys has certainly improved. According to a report on CNBC, Mattel may be in risk of going into bankruptcy. These comments come from Isaac Larian, the CEO of MGA who is a rival toy company.
After Mattel reject Larian’s takeover bid he made a statement on CNBC stating that he believed Mattel would be bankrupt “within a year or so”. His then goes on to back up his statement by stating that the board with the exception of one person, is made of people who aren’t from the toy industry. That one person who is from the toy industry ran Top Toys, a Denmark toy company that went into complete liquidation. He goes so far to say that if he was in control he would “fire the whole board and the management board , which are frankly useless” which incites a chuckle from one of the hosts. Larian goes on to state that Mattel has great designers and infrastructure.
One of the CNBC hosts goes to defend Mattel who hired a new CEO early last year. She states that there has been improvement after his takeover and that this will be a multi-year turnaround. It’s clear that Larian believes Mattel has strong potential but has no faith in the management team. We do have to take into account that all these statements are coming from a man who was turned down in a bid to acquire Mattel.