Toy company Fantastic, whose brands includes The Wiggles and Power Rangers, fears ABC Learning's receivership could hurt its earnings.
Funtastic said one of its subsidiaries, Judius Pty Ltd, had a contract with ABC's subsidiary, ABC Developmental Learning Centres Pty Ltd, for the supply of child care products to ABC centres in Australia, New Zealand and the United States.
"The appointments of receivers and voluntary administrators to ABC Learning and certain of its subsidiaries could have an adverse effect on the earnings of Funtastic for the year ending December 31 and potentially future years' earnings,'' Funtastic said.
"It is also possible that the potential effect could be material.''
Funtastic shares dropped 7.5% to 18.5 cents in afternoon trade.
The company said it was not possible yet to quantify the potential effect, or to assess how material it might be.
Funtastic said its board had decided to conduct a detailed review of its exposure to ABC.
Funtastic expects to enter discussions with ABC's receivers and administrators to continue the contractual arrangements with ABC Development Learning Centres.
BusinessDay, with AAP
