Funtastic has slashed its full-year earnings guidance by as much as 48 per cent and announced a management shake-up, with chief executive Stewart Downs to hand the reins to the head of the wholesaler’s international operations, Nir Pizmony, in August.

In a trading update following a two-day trading halt, Funtastic , which sells Pillow Pets, Chill Factor slushie makers and Power Rangers action figures, said earnings before interest, tax, depreciation and amortisation for the 12 months ending in July were expected to fall to between $10 million and $12 million, compared with previous guidance of $19 million to $23 million.