Toy Brands Struggle Without Toys “R” Us

The country’s largest toy manufacturers, Hasbro (Pawtucket, R.I.) and Mattel (El Segundo, Calif.), are struggling to cope with the closure of Toys “R” Us. Both companies have reported restructuring plans as a result.

Hasbro (maker of Monopoly, Play-doh and Transformers-branded toys) reported a 7 percent sales drop in its third-quarter earnings report. It will also layoff hundreds of workers as part of a $50 to $60 million restructuring plan. A spokesperson told Business Insider the layoffs will affect a “mid-single digit” of the company’s 5000 employees.

Mattel (maker of Barbie, Hot Wheels and American Girl) has not yet announced its third-quarter earnings, but it said in July that it would be reducing its workforce by 2200 jobs, citing lost sales from Toys “R” Us’s closure.

The two toy makers have tried to expand their reach beyond Christmastime, but have fallen short of their own expectations. Toys “R” Us was a reliable source of year-round sales, whereas big-box retailers like Walmart and Target hold their larger toy purchases for later in the year.