Financial Times FT.com

Made in China

Supply problems hit toy industry

By Jonathan Birchall in New York

Published: October 21 2008 03:12 | Last updated: October 21 2008 03:12

Mattel, the largest US toymaker, said on Monday the credit crisis was making it harder for some of its retail customers to acquire pre-Christmas stocks, and for some of its suppliers – mainly based in Asia – to pay for the raw materials they use.

“Retailers are reluctant to make inventory bets, and it will be difficult for some of our customers and vendors to obtain the funds they need to buy inventory and raw materials,” Bob Eckert, chief executive, said on Monday as Mattel reported third quarter results.

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