FREMONT, Calif. — Ailing toy maker Worlds of Wonder Inc., struggling to meet creditor demands three weeks before Christmas, said Friday that it has laid off nearly half the company work force.
Officials of the once prosperous maker of Lazer Tag toy guns and Teddy Ruxpin talking bears also confirmed that the company has not paid $3.4 million in interest due last Tuesday on its convertible subordinated debentures, a type of debt security that can be converted into common stock.
Worlds of Wonder executives met Thursday with 150 of the company's largest creditors to discuss its financial crisis. They subsequently released a press statement confirming the layoffs and delinquent interest payment.
The 197 layoffs reduce the company's worldwide staff to 211 employees, down from a high of more than 600.
Spokeswoman Leslie Wat declined to comment on whether Worlds of Wonder may further pare down its operations through selloffs. She said the layoffs "will help" in recovery efforts, although the company remains unable to make the interest payments.