Funko replaces CEO as company sees more than $28 million loss

It’s not all fun and games at Funko, where financial challenges are forcing changes at the top.

The Everett-based company, known for its pop culture collectibles, including vinyl figures with giant heads, confirmed Interim CEO Michael Lunsford replaced CEO Cynthia Williams on July 5.

“We believe a change in leadership is necessary to deliver full shareholder value and believe Mike’s appointment positions us accordingly,” Charles Denson, Funko Board of Directors Chairman, said in a statement.

Funko sales were down in the first quarter of the year. The company lost $28.1 million dollars, or $0.52 per share.

Funko appointed Williams to the CEO position just over a year ago, at the time touting her “nearly two decades of senior leadership experience across the consumer products gaming and e-commerce industries.” She had most recently worked as an executive at Hasbro.

“The Board of Directors thanks Cynthia for her many accomplishments during her tenure at Funko,” Denson said without elaborating.

In the statement, Lunsford acknowledged, “The recent changes to the global business environment have constrained our growth initiatives, and we intend to first address those challenges.”

Funko raises prices over tariffs

In a May blog post, Funko noted the need to raise prices because of tariffs as well as the rising cost of shipping and raw materials.

“I believe we have yet to achieve the full potential of Funko,” Lunsford said. “We have an iconic brand, passionate fans, great licensing and retail partners, and a dedicated team of highly capable employees.”

Lunsford was the company’s interim CEO in 2023-2024 and continues to serve as a member of the company’s Board of Directors. Denson said Lunsford will help the company search for its next CEO.

Read more of Heather Bosch’s stories here.

Follow @http://www.twitter.com/heatherbosch