Hundreds of Funko Pops Found in Landfill After News Will Be Destroyed Worth $35 Million
If you heard earlier this year that Funko plans to destroy millions of dollars worth of its products, this may not surprise you. After the company revealed that it would take a tax write-off in 2023 by disposing of excess product and throwing it in the trash. How much trash? to the tune of “about $30 million to $36 million.” Now this multi-million dollar product is starting to find its way to landfills across the country. Kotoko He brings word on this, revealing a video on Reddit of thousands of Funko products included in the waste can.
The user who uploaded the video (shown below) said: “It was just a ‘right place at the right time’ situation. The main reason this video was released was to show corporate wastefulness and greed at the expense of consumers.” Kotoko. “They were found in a dump in Washington. They were actually all sealed. They all had Funkoverse toy product from Nightmare Before Christmas, Aggretsuko, Harry Potter and Jurassic Park Funkoverse.”
Why did this happen? According to Funko’s financials, net sales increased 29% for the entire fiscal year of 2022, passing $1.3 billion; However, their net income decreased by 108%. Funko also confirmed that it had total debt of $245.8 million, up 42% from the previous year. Like any company with a lot of debt, not a lot of assets, some cost-cutting measures need to happen. On top of that, Funko confirmed that they have a unique problem, especially that they have a lot of inventory sitting in warehouses and warehouses that is costing them money. Enough money that it would be cheaper to destroy it than to pay to store it, plus the benefit of the tax write-off they get from destroying it.
Find the funk pops in the landfill to be destroyed
“Year-end inventory totaled $246.4 million, up 48% year-over-year,” he said in a statement earlier this month. “This includes inventory which the Company intends to dispose of in the first half of 2023 to reduce implementation costs by managing inventory levels to align with the operating capacity of our distribution center. This is expected to result in a writedown in the first half of 2023 of approximately 30 to 36%. Million dollars “.
In short, in 2022 Funko has produced more product than it can actually sell. But they expect revenue growth in 2023.
(Cover photo by Smith Collection/Gado/Getty Images)
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