Since the Beanie's drop, he continues, Zany hasn't had the same share of any other hit toys. To be sure, bankruptcies and closures of chains have become a constant theme in the specialty toy retail sector. That said, news of Zany's problems is being met with concern by many in the industry. But along with the increase in retail distribution, some say the effect has seen an undercutting of the economics of the sector which, historically, has prospered by selling the values and the quality of a toy rather than its price, says Peter Reynolds, CEO of Germantown, Wisconsin-based toyco Brio. There's too much retail right now.
People are willing to give toys away.
At press time, the company had managed to extend its stand-still agreement with its suppliers, giving it a deadline of April 30 to find a new source of capital. Though the last thing toycos want to see is another chain go belly up, for now, many in the industry aren't willing to bet on Zany's fate. The upside, he maintains, is that Zany's performance problems can be easily fixed. California-based specialty toy chain Play Co. Toys files for bankruptcy protection and begins planning the total liquidation of its assets. The Great Train Store shutters its doors for good.