More of China's killer toys recalled -- will Target (TGT), RC2 (RCRC) and Jo-Ann Stores (JAS) feel the burn?


The Associated Press reports that another batch of killer toys from China is being recalled. On Wednesday, toys and children's necklaces made in China were recalled, including five more items from the popular Thomas & Friends Wooden Railway product line, because they contain dangerous levels of lead.

Here are the details:

  • 23,500 more necklaces, bracelets and pendants imported by TOBY N.Y.C. of New York;
  • 850 children's Spinning Wheel Necklace necklaces, produced by Rhode Island Novelty of Cumberland, RI;
  • 350,000 Happy Giddy Gardening Tools and Children's Sunny Patch Chairs, imported by Target Corp. (NYSE: TGT) of Minneapolis, MN;.
  • 200,000 Thomas and Friends Wood Railway Toys and 800 Britain's "Knights of the Sword" series toys, distributed by RC2 Corp. (NASDAQ: RCRC) of Oak Brook, IL
  • 16,000 children's toy rakes imported by Jo-Ann Stores Inc. (NYSE: JAS) of Hudson, OH.
  • 10,000 Floor Puppet Theaters produced by Guidecraft Inc., of Englewood, NJ.



Chinese officials try to minimize the significance of the recall -- claiming the problem is "one in a thousand" -- while admitting it takes the problem "seriously." Meanwhile, it's unclear what financial impact these recalls will have on the publicly traded retailers that distribute these toys.

With the holiday season fast approaching, will you be buying Chinese toys? If not, where will you buy those toys?

Peter Cohan is president of Peter S. Cohan & Associates,. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.

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