(WTAJ) — Funko is looking to throw $30 million worth of their Funko Pop! figures right in the trash.
The company held its quarterly meeting with shareholders and announced that inventory increased by 48% compared to the end of 2021.
“Inventory at year-end totaled $246.4 million, an increase of 48% compared to a year ago,” their official press release said. “This includes inventory that the company intends to eliminate in the first half of 2023 to reduce fulfillment costs by managing inventory levels to align with the operating capacity of our distribution center. This is expected to result in a write-down in the first half of 2023 of approximately $30 to $36 million.”
Basically, Funko said they currently have so much inventory that it was cheaper to throw it away than to pay for the 3rd party storage facilities they were using to store it all after their warehouse reached compacity.
“During the fourth quarter and in early 2023, we have made progress in addressing operational issues that impacted our results in the second half of 2022,” said CEO Brian Mariotti.
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Funko said that the issues arose as the pandemic carried on and inventory became overwhelming, causing their actual warehouse to reach capacity and thee company to find 3rd party warehouses and storage facilities.