Funko has announced a number of new measures to bolster its financial flexibility as the Covid-19 pandemic continues.
The initiatives will come into effect from 5 April, and form a wider strategy of reducing operating expenses and minimising the flow of outgoing capital, other than the vital funds attached to ongoing product development.
The most immediate move is the furloughing of a “significant portion” of Funko staff, who will be placed on leave from Monday – though US employees will retain access to their medical benefits, and will be able to access local unemployment benefits, where available.
Members of the executive team and some of the upper management structure will also see their pay cheques slashed, temporarily, to help cut costs. Incoming inventory will also be balanced against forecast sales to lessen the volume of held stock – particularly as many of Funko’s biggest bricks and mortar retail partners are closed as part of governmental restrictions on trading.
“During this uncertain and unprecedented time, it is essential we take actions to best position Funko for our employees, partners and shareholders,” says Brian Mariotti, Chief Executive Officer.
“We are making difficult decisions that we believe will put us in a position of strength to navigate this crisis and support the long-term health of our company.”
Funko says the measures will help to put it on good footing once the pandemic has passed its peak. As of 31 March 2020, the company says it has more than $50 million of cash on hand, with access to $46m from a $75m revolving credit facility, which was paid down to $29m earlier this year.