Thursday’s Hasbro Board Meeting May Determine Company’s Future in RI

Thursday’s Hasbro Board Meeting May Determine Company’s Future in RI

On Thursday, members of the board of directors of Hasbro will be meeting, and it is expected that one of the agenda items is the future location of the corporate headquarters.

The 100-plus-year-old Rhode Island corporation has long been a community stalwart. But today, things are much different.

The board no longer includes a single Rhode Island resident. Moreover, no members of the Hassenfeld family serve on the board.

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Alan Hassenfeld, the former chairman and CEO, is still a top shareholder, but he has moved to Florida and no longer has a formal leadership role with the company.

Earlier this week Boston Business Journal reported that Hasbro has been looking at a location in the Seaport District in Boston as potentially home for its corporate headquarters.

 

Struggling Company

Hasbro, as a business, has been struggling. The fourth quarter and full 2024 financials are not scheduled to be released until February 20, but the third quarter numbers were dismal.

In the first nine months of 2024, revenue for the company declined 18%.

CEO Chris Cocks has implemented draconian cuts, but the strategy has yet to show significant dividends.

In December of 2023, Cocks announced layoffs for 1,100 workers, which came after roughly 800 jobs job cuts earlier in that year. More than 20% of the company’s headcount has been cut in the past 18 months.

Hasbro stock, in a bull market, has been an underperforming also-ran. The stock closed Tuesday at $57.15 a share — down 22% from the 52-week high of $73.46 a share.

 

China Factor

Another factor that may dampen a move to Boston is the threat of tariffs on products manufactured in China.

More than 50% of Hasbro’s toys are manufactured in China, and a significant tariff would only make its products more expensive and less competitive. The board may be reluctant to incur a massive new cost during a period of tremendous uncertainty.

 

McKee's Legacy

The loss of Hasbro, one of Rhode Island’s most successful corporations, would be another black eye for the flailing administration of Governor Dan McKee. The Governor has run out of eyes.

McKee has been widely ridiculed for the failure of the Washington Bridge and equally critiqued for the failure to rebuild the bridge.

In addition, the management of the state’s technology infrastructure has been hacked. A massive cyberattack has led to the personal data of more than 600,000 Rhode Islanders being exposed to hackers.

The state’s consultant - Deloitte - is now being sued in federal court in a handful of class action lawsuits. McKee re-signed Deloitte to a contract extension despite a series of earlier controversies.