New York — When Toys R Us filed for bankruptcy in September, it vowed to keep operating stores, boosting investor optimism that the effect on the biggest toy makers would be limited. But with Hasbro’s weaker-than-expected sales forecast and Mattel’s revenue trailing projections — and both companies citing Toys R Us as a key reason — the retailer’s struggles loom large, with Christmas under two months away. "We did have a real challenge with the timing of that bankruptcy," Mattel CEO Margo Georgiadis said. "The whole industry felt the pressure." Mattel and Hasbro combined lost almost $800m in market value last week. Toys R Us is their second-largest customer after Wal-Mart Stores. The toy makers reduced shipments in September as Toys R Us teetered on the brink of filing. The retailer has said it plans to exit bankruptcy after lessening its debt load. Mattel’s sales plummeted 22% in North America, and the company said half of that drop came from fewer shipments to the toy chain and de...
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