Jakks Pacific has reportedly received a takeover offer from Alleghany Corp., the parent company of Jazwares.
Bloomberg reports that Alleghany Corp., a New York based insurance and investment firm, this week put in a bid of 85 cents a share to purchase Jakks Pacific, valuing the company at around $27.7m.
Shares in Jakks Pacific have fallen nearly 70 per cent in the past 12 months.
The offer follows a slow start to the year for Jakks, which reported a 10 per cent slump in sales during the most recent quarter and a decline in net profit of more than a third to $17.7m.
In its most recent financial statment, reported last month, Jakks CEO Stephen Berman said he expected business to pick up in the back half of 2019, as products for Toys Story 4, Frozen 2 and the 30th anniversary of The Little Mermaid began to bear fruit.
But the company has recently been forced to deal with mounting debt, recapitalise and extend its debt obligations with an investment group led by Wells Fargo.
The company has also been tied up with the sale of additional outstanding shares to Meisheng, which would give the Chinese firm a 51 per cent stake in Jakks.