Mattel’s Time Is Running Out Amid Federal Securities Probe, And Not Even Barbie Can Save It
Oct 22, 2019
With its 75th birthday right around the corner in January, Mattel, Inc. (NASDAQ: MAT) faces one of the biggest crises of its life in a perfect storm that could spell game-over if a recession bites. The company, which unleashed the iconic Barbie brand to the world 60 years ago, is struggling with its $3 billion debt and is facing a probe as to whether it violated federal securities laws.
It has lost two-thirds of its value over the past three years and has a mountain of trouble as it tries to turn itself around with rapidly declining sales, operating losses, high-profile executive departures, and losing $531 million on sales of $4.5 billion last year. If hedge funds, who are by far the biggest investors, pull out amid the propagation of recession fears, MAT’s stock could go to zero, says The Edge (who source underperforming companies for activist involvement, Special Situations and Spinoffs).