Business Wars Encore: Hasbro vs Mattel | The House of Cards | 3
Dec 28, 2020
Mattel's Sizzlers toy line faces a dismal holiday season, falling short by $30 million. In a desperate attempt to cover up the financial turmoil, executives resort to unethical accounting, jeopardizing CEO Ruth Handler’s career. Meanwhile, Hasbro grapples with dwindling sales of G.I. Joe as the toy market shifts towards electronics. The pressures of legal issues and fierce competition push both companies to innovate, leading to the birth of Mattel's first handheld electronic game. Tensions rise as the battle for toy supremacy unfolds.
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Mattel's Sizzler Crisis
- Mattel faced a $30 million sales shortfall with their Sizzlers toy line in December 1970.
- To meet Wall Street expectations, they implemented "bill and hold", inventing orders to inflate sales figures.
Mattel's Downfall
- Mattel's fraudulent accounting practices continued, leading to a reported $30 million loss in 1971.
- Stockholders filed lawsuits, and lenders forced leadership changes, demoting Ruth Handler.
The House of Cards Falls
- Mattel's cover-up unraveled in 1973 when overlooked costs led to a corrected $32 million loss and a stock price crash.
- The SEC launched an investigation, and Ruth Handler was ultimately forced out of the company.