$30-$36 million worth of Funkos are about to end up in a landfill because holding excess inventory is costing the company way too much. Funko Pop collectibles made a name for themselves around the globe and aren’t exactly dirt cheap, so imagine all those cool gaming Funkos being sent to their deaths!
How many Funkos is too many Funkos?
As spotted by Kotaku, Funko said in a press release that its year-end inventory as of December 31, 2022 totaled $246.4 million, which is an increase of 48 percent year-on-year.
“This includes inventory that the Company intends to eliminate in the first half of 2024 to reduce fulfillment costs by managing inventory levels to align with the operating capacity of our distribution center,” reads a note to investors. Basically, Funko will be writing down somewhere between $30 million to $36 million within the first half of 2024 unless someone stages an intervention.
According to ICv2, CEO Brian Mariotti told investors in a recent earnings call that Funko’s new Arizona warehouse is so flooded with inventory that the rental fees for shipping containers holding the stock is causing the company to bleed cash.
All we need to know is where this landfill might be so the toys and collectibles can be rescued!
