Hebrew daily “Yediot Ahronot” reports that Hasbro (NYSE:HAS), the world's second largest toy manufacturer, is closing its Israeli subsidiary after ten years. The Israeli office was based in Neve Ilan. The company's business in Israel is expected to be transferred to Kodkod.
Hasbro is the largest supplier of toys in Israel. Even Jewish ownership of the company, which has an annual turnover of $3.1 billion, was not enough to help the Israeli branch survive the company's global trend of closing its smaller activities. Hasbro recently closed a factory in Spain and a logistics center in the Netherlands.
The choice of Kodkod surprised the toy industry. The company is best known for Rummikub, the best-selling Israeli game in the world, and as a successful maker and marketer of board games. However, until now, the company has not been active in other toy sectors in which Hasbro is, such as action figures like Action Man and Transformers, model trains, dolls, and stuffed animals. Hasbro is currently developing a line of interactive stuffed animals considered a worldwide hit, except in Israel, where sales were low, mainly because of the price.
Hasbro Israel's 15 employees will be laid off.
Published by Globes [online] - www.globes.co.il - on February 11, 2004