lhowell

Mattel: Daddy I Won’t Do It Anymore

In China, lead-based paints, mattel, toys on September 13, 2007 at 5:12 am

Remember the good ole days when you got a severe spanking from your parent who was physically closest to you when you disobeyed or you committed a very serious infraction or did something very bad? For $100, what were the first words that flew out of your mouth when it was time to pay the price for your naughty behavior? Right, you win $100 dollars, the first thing that came out your mouth was, “I won’t do it anymore.”

Well, Robert A. Eckert, CEO of Mattel said the same thing to Congress earlier today September 12, 2007. Of course, what happened as a kid after saying, “I won’t do it anymore” is the same thing that will continue to happen with Mattel? They (Mattel) will do it again and likely again? Not until the punishment is so severe that they will get it, here’s the scenario if they don’t behave. Please note, that the video is from August 14, 2007.

 

The result will be: private equity firm purchases Mattel and takes the company private, inserts new management and plays hardball with the Chinese manufacturers to use non-toxic paint that is safe for unsuspecting 1-2 year olds who are teething.

Toy prices will increase because the Chinese manufacturers are now forced to use non lead-based paints because it costs more to use better quality paint. Using unsafe paint means it costs less to manufacture toys, which means more, unsafe toys for Wal-Mart to push like crack rocks to naive parents who simply want their kids to close their pie hole while shopping.

In a few years, the private equity firm files an IPO, makes boat loads of cash for the 3-4 MEN who own the private equity firm as they do similar deals in the meantime with other companies.

 

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