DENVER — The owner of B4Adventure, a Denver toy company, told 9NEWS they are poised to lose $2 million this year.
Ed O'Brien started the company in 2011 and has never experienced the issues he has over the last four months.
"I'm completely stressed out," O'Brien said. "All of our products are made in China, that's what's causing the big problem because we can't really find solutions here in the U.S."
Problems with the supply chain have products headed to the United States sitting overseas for extended periods of time. The cost to ship containers has also increased due to demand. O'Brien said the cost for him to ship a container from China to the U.S. went from about $6,000 to roughly $30,000.
"That's $2 million of unexpected expenses you cannot manage around that," he said. "Its just been an upside down year for the business."
B4Adventure toys are tailored to get kids outdoors and active. O'Brien's team is still pushing out product but he said it's only one-third of what he was expecting to get on shelves this holiday season.
"Our staff was close to 30 people, unfortunately we've laid off 30% of them over the last three months because of the supply chain issue," he explained. "I hope we make it through this. It's still hard to understand how to deal with this from a business standpoint."
O'Brien encouraged shoppers to have patience this year, shop early and, if you can, shop directly from companies rather than third-party websites.
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