Popular Disney Toy Maker Is About to Dump $30 Million Worth of Toys in a Landfill

The Walt Disney Company has created some of the biggest fandoms in the world. And now that they own Marvel and Lucasfilm, those fandoms have only grown. Many Disney fans can tell you that the best way to express your fandom love is to purchase some truly great merchandise. Over the years, certain things have become staples for Disney fans. Things like themed Minnie Mouse ears, spirit jerseys, Loungefly backpacks, and more. For those who are super into collectibles, there are Funko Pop! figurines.

There are thousands of Funko Pop! figurines that cover nearly every fandom imaginable. Disney has sold limited-edition Funkos that sold out in a matter of hours. Funkos are still some of the most collectible items out there. However, it seems that, soon, millions of those collectibles will find themselves becoming a part of landfills.

According to USA Today, Funko will be trashing at least $30 million worth of Funkos. Funko’s inventory is up more than 48% from last year, and Funko wants to cut that amount down. Per USA Today:

Funko “intends to eliminate” the excess toys in the first half of 2023 to “reduce fulfillment costs by managing inventory levels to align with the operating capacity of our distribution center,” the company said. The move could cost between $30 million and $36 million. 

The elimination of so much inventory may also have to do with the big drop in the company’s stock.

Sales in Funko’s core collectibles category fell 6.6% between 2021 and 2022. And the company’s income fell 108% to $5.2 million in fiscal year 2022 compared to 2021, according to the earnings report.

Still, the company reported a 37% growth in direct-to-consumer sales by the end of its fourth quarter. 

“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,” CEO Brian Mariotti said in a statement. “We are gratified that the Funko brands continue to see strong consumer demand from our incredibly loyal and resilient global fanbase.”

In layman’s terms, Funko is saying that it is costing them more to store and ship the items than the company thinks it can make selling the product. It is also possible that they simply made too much of certain Funkos. Those Funkos didn’t sell and are now just taking up space in a warehouse that could be used for new merchandise.

In addition to the Pop! characters, Funko has also created plushes, games, mini backpacks, and more.

Funko has not said which Funkos will be making their way to the trash heap. However, Disney Funkos are incredibly popular, so it’s unlikely that Guests and fans will find themselves unable to purchase the Funkos they love either online or in one of Disney’s many theme parks. You can also go on Funko’s website and find hundreds of Funkos that will be the perfect addition to your collection.