Former Funko CEO resigns from the Everett company

EVERETT — Brian Mariotti, Funko’s former CEO, has resigned from the company.

Mariotti resigned Sept. 1, according to documents filed with the U.S. Securities and Exchange Commission.

Mariotti’s resignation “was not due to any disagreement with the company on any matter relating to the company’s operations, policies or practices,” the SEC filing said.

Before leaving, Mariotti entered into an agreement with Funko to provide consulting and advisory services, the filing said.

In July, Mariotti announced he was taking a six-month sabbatical from his executive role. Board member Michael Lunsford was named interim CEO.

However, Mariotti said he would remain a board member during his leave of absence.

“While I’m going to step away from the day-to-day business to recharge my batteries, I plan to stay active on our board,” Mariotti said in July.

His resignation from the company and the board ended his sabbatical.

Mariotti is no longer listed among the company’s eight directors. A board typically provides oversight of a firm’s activities and performance.

Funko did not immediately respond Tuesday to a request for comment.

Mariotti served as CEO of the company starting in 2005, stepping down in early 2022 to serve as chief creative officer. He returned as CEO in December of last year.

Mariotti and a small group of investors had bought the company in 2005 from founder Mike Becker, who founded Funko in 1998 in Snohomish with early products such as bobbleheads and coin banks based on cereal advertising mascots and other retro characters.

Through licensing deals, Mariotti expanded Funko’s portfolio to include licensing deals for popular characters from comics, movies and TV shows.

The pop culture toymaker’s signature line of Pop! vinyl figures — with oversize heads, big eyes and little bodies — first appeared in 2010.

The company opened its flagship 17,000-square-foot store and headquarters in the old Bon Marche building in downtown Everett in 2017. That same year, Funko went public on the Nasdaq Global Select Market.

During the pandemic, sales of Funko’s vinyl dolls and collectibles surged. But the temporary run on Funko Pops! sales cooled.

Profits fell, leaving the company with unsold inventory.

A plan this year to dispose of thousands of the company’s plastic figurines drew scrutiny. Funko told investors it would try to recycle as many of the toys as possible.

Last year, the toymaker issued layoff notices to more than 250 employees at warehouses in Everett and Puyallup, consolidating its distribution operations to a Phoenix suburb.

Janice Podsada: 425-339-3097; jpodsada@heraldnet.com; Twitter: @JanicePods.