Update: After publishing the article, a representative speaking on behalf of Funko reached out to us to say that "layoffs did take place" and "the poster business will continue."
Fans of movie memorabilia may want to rush to pick some more up, as it may soon be too late. A new report from The Wrap said that Funko, the company that owns memorabilia brand Mondo, is laying off most of the latter's staff. The report additionally said that Mondo will be ceasing all production of its signature movie posters.
The news is especially shocking given that Mondo's movie posters are what first put the company on the map, with its distinctive and often limited-edition artworks becoming valued treasures for film collectors. Mondo also manufactures other types of memorabilia, most notably vinyl records of film soundtracks and collectible toys. In addition to Funko gutting Mondo's poster workshop, sources told The Wrap that the company was also doing away with a division called The Lab, which creates "cutting-edge experiences and products." The news was not all doom-and-gloom, and Mondo's vinyl and toys divisions are still remaining. However, insiders made it clear that with this recent gutting of the poster division, it is uncertain how long these may last. On the employee side, the total number of people who were laid off is unclear; However, The Wrap reported that Mondo co-founders Rob Jones and Mitch Putnam both got the ax.
Founded in 2004, Mondo was owned by the theater chain Alamo Drafthouse Cinema for almost the entirety of its life cycle. This changed in 2022, though, when Funko, an entertainment company best known for creating film and television-centric vinyl figures and bobbleheads, purchased Mondo after Alamo Drafthouse filed for and then emerged from bankruptcy. The acquisition seemed to be a win-win for both sides, as Mondo was looking for a new home and Funko was seeking to expand their merchandising line to be more than just their signature bobbleheads.
Mondo's Had Its Ups and Downs
The bad news began for Mondo this year, when Funko reported that it had suffered undisclosed losses in the fourth quarter of 2022. As a result, Funko said, it would liquidiate anywhere from $30 million to $36 million of its inventory and cut up to 10% of its staff. The announcement came after Funko brought back its founder, Brian Mariotti, to serve as CEO, as well as former Walmart.com boss Steve Nave to serve as Funko's COO and CFO. The layoffs represent a fall-from-grace for Mondo, which has collaborated with massive entertainment companies such as Lucasfilm in the past and released exclusive vinyl records from Disney. Mondo has gained a cult following over the last two decades, and the company even had its own convention, MondoCon, in Austin, Texas, when it was owned by the Alamo Drafthouse.
However, following Funko's takeover of the company, there began to be creative differences between the two brands, with Funko disliking some of the new ideas that were brought up by Mondo executives. This includes items such as a show devoted to Peanuts and limited edition capsule collections of merchandise that Funko just didn't go for. While these types of wacky concepts were once hallmarks of Mondo, the company began to see a shift after Funko's acquisition, culminating in the shuttering of the poster division and the layoffs.