Funtastic shareholders reject delisting plan

A pitch by the directors of struggling toys company Funtastic to delist from the ASX has been nixed by shareholders.

A proposal to delist the troubled toy retailer, Funtastic, has been rejected by shareholders.

A pitch by the directors of struggling toys company Funtastic to delist the troubled wholesaler from the ASX to enable it to negotiate a restructure of its debt has been rejected by shareholders.

At an extraordinary general meeting yesterday, Funtastic shareholders voted 84.27 per cent against the resolution to remove the company’s shares from the ASX, with only 15.73 per cent supporting the proposal.

In the face of the rejection, Funtastic vowed to ensure the ongoing profitability of the business, to continue negotiations with the NAB over its long-term debt facility, and to develop new brands and products.

It will also use an extra $3 million in short-term funding as it broadens its customer base.

Funtastic, which once had licences for the most powerful toy brands in the world under its control, including Thomas the Tank Engine, The Wiggles, Ben 10, Bob the Builder and Bratz, sought to have its shares delisted as losses and a collapse in its share price saw liquidity dry up.

Funtastic was formerly a market high-flyer that had a shareholder base the envy of any small-cap company, with investors including Gerry Harvey, Alex Waislitz and the Mathieson family.

The latest annual report lists retail billionaire Gerry Harvey as owning 40 million shares, or just over 5 per cent of the company.

The company suffered from a downturn in retailing and competition from new toys. There was also a failed push into other categories, including sweets and film distribution, while it also gathered vacuum cleaners under its wide portfolio of products.