Bindeez Toy Recall Causes Shares To Fall 22 Per Cent

Shares in the UK listed toy company, Character Group fell 22 per cent following an announcement to customers it would recall the colourful bead toy Bindeez.

The group is listed on the AIM market in London and distributes Bindeez in the UK and Ireland on behalf of Melbourne-based Moose Enterprises.

Reports indicate Bindeez have been manufactured by a third party in China.

It has not been a positive time for toy manufacturers or retailers. Parents can be rightly concerned because between the months of May and July of this year select lines of toys sold by US giant Mattel were found to have high levels of lead paint.

A third party manufacturer in China was found to be at fault but more than 19 million toys had to be recalled globally.

"Character Group believes that its stock of Bindeez products conforms to UK safety regulations.

"However, the group has, as a precautionary safety measure, instructed an independent test laboratory and a EU toxicologist to immediately test and analyse the chemical composition of representative samples of the group's Bindeez stocks in order to fully satisfy as to their safety," said a spokesperon.

Character Group's shares fell 43 pence, to 146 pence.

This shows that a product recall, even by a supplier can have a negative impact on share prices.

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