Ark. toymaker lays off 24 in blow to Wal-Mart's 'Made in USA' program

A Rogers, Ark.-based toy manufacturer, which received a $2 million startup grant from the state to participate in Wal-Mart Stores Inc.'s (NYSE: WMT) "Made in USA" program, laid off 24 workers on Friday as the company filed a $20 million lawsuit against the Chinese importer who previously produced toys for Wal-Mart.

Redman & Associates CEO Mel Redman said in a statement that Hong Kong-based importer Sales Chief Ent. engaged in an underhanded strategy to disrupt the “Made in USA” initiative, according to Arkansas Business.

Redmon & Associates, with the help of another manufacturer, planned to produce 100,000 of the 600,000 toy-car holiday order – the balance of which would be handled by Sales Chief. The suit alleges Sales Chief demanded payment upfront on its toys, which effectively stopped the flow of goods to Wal-Mart.

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