Pop culture licensee looks to take actions to “best position company for employees, partners and shareholders” says ceo.
Pop culture licensee, Funko has outlined its key actions to enhance the company’s financial flexibility during the COVID-19 crisis.
From April 5, the company has confirmed that it will furlough a significant portion of its employees, while it is also implementing salary reductions across the executive team, as well as members of upper level management.
Funko will also execute reductions in operating expenses and non-product development capital expenditures and proactively manage working capital including reducing incoming inventory to align with anticipated sales.
In addition to these actions, Funko is evaluating further options to increase flexibility and retain liquidity. Since December 31, 2019, the company repaid all outstanding borrowings on its $75 million revolving credit facility and subsequently drew down approximately $29 million. As of March 31, 2020, the company expects to have over $50 million of cash on hand and $46 million of availability on its revolving credit facility.
“During this uncertain and unprecedented time, it is essential we take actions to best position Funko for our employees, partners and shareholders,” stated Brian Mariotti, ceo. “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.”