In a statement issued after the markets closed, Canada's venerable toy company said the resignation was effective immediately.

Macdonald Irwin, company chairman and father of George Irwin, has taken over the president's role until a permanent replacement was found and a search committee has been struck to find a new president and chief executive, the company said.

Maureen Atkinson, an analyst at J.C. Williams Group, said that as a manufacturer, Irwin Toy will have already had its ''kick at Christmas'' since retailers have stocked holiday merchandise by this point. George Irwin's departure likely came in the wake of disappointing holiday sales, she said.

``Obviously the results were not good..If it hadn't sold by now, it wasn't going to sell,'' she said. ``Probably the best thing that could happen to it would be if it were bought out.''

Irwin Toy's products include the Dragonball Z action figures and Scooby Doo plush toys and video games.

George Irwin, who had been president of the 75-year-old Canadian company since 1990, faced a self-admitted ``major challenge'' to his leadership in October 1999 when board-level executives questioned his management following two years of losses at the company.

Three Irwin executives -- George Irwin's brother, cousin, and uncle -- resigned at the time amid speculation of a family feud. The struggle resulted in what the company, which is majority-owned by the Irwin family, said was ``a new direction with new people.''

Analyst Richard Talbot of Talbot Consultants International said the timing of Irwin's resignations suggests trouble with the company's Christmas orders.

``It's a funny time to go. Normally if there's problems with toys, you usually wait until after the Christmas time,'' Talbot said. ``Obviously things are not well in Irwin land if people are being booted before Christmas.''

In the statement, MacDonald Irwin said the company was ''stronger today than at any point in (its) 75-year history.''

Irwin shares closed unchanged at C$4.40 on the Toronto Stock Exchange. The stock has moved in a 52-week range of C$7.35 to C$3.50.

Source: Reuters

[Posted 11/28/2000]