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Palisades Entertainment, LLC, better known as Palisades Toys, was an American manufacturing and distributing toy and company geared toward the adult Collecting market. Established in 1994, the company generally worked within the same vein as competitors such as McFarlane Toys and NECA, producing detailed action figures, statues, plushes, and other collectibles of licensed properties up until its bankruptcy in 2006. Palisades also developed the brand Factory X which continues under Limited by CAS Inc. Rustin Parr OAFE. Retrieved on 7-17-10. My Interview with Action Figure Insider’s Julius Marx and ToyOtter – Part 3 AFHUB (July 3, 2009). Retrieved on 7-17-10.
In terms of product quality, Palisades set high standards, particularly with its array of action figures. Such attributes included strong attention to detail and likeness, a high rate of joint articulation and bountiful accessories with tedious working functions. The company frequently employed designers from the fan community of each property they licensed Fanmode interview: Bryan Wilkinson (part 3) Fanmode (2009). Retrieved on 7-17-10. and always credited staff and contributors on packages. Palisades also assigned help from various groups such as the painting and sculpting talents of Plan B Toys Plan B-Toys Raving Toy Maniac (April 2002). Retrieved on November 2, 2008. and accessory work by Industrial Zoo. The Muppet Show: Series One Raving Toy Maniac (2001). Retrieved on November 2, 2008. The Muppet Show collection, celebrating the shows 25th anniversary, would become one of Palisades' flagship licenses. The line lasted nine series through 2002-2004 and included various Fan convention and store exclusive figures as well as expansive playset. Aside from the aforementioned qualities, it also boasted an innovative technique in which a magnet placed inside the figure's head would allow its magnetically equipped hat to sit firmly in place.Crawford, Michael Muppets Series 6 - Clifford, Patrol Bear Fozzie, Statler and Waldorf MCToys.com (2003). Retrieved on November 2, 2008. This eliminated the need for an unsightly hole in the top the figure's head, which was the traditional way of attaching a hat (via peg).
In 2001, Palisades acquired the license to produce figures to commemorate its 35th anniversary. Concept designs were soon being developed and aimed for a style similar to the Playmates Toys' previous Star Trek line. Palisades "toys around" with Star Trek's 35th anniversary celebration (July 2001). Retrieved on November 2, 2008. However, due to such comprehensive plans, the figures were never produced.
In October 2003, Fun-4-All unveiled plans to produce Sesame Street action figures but had only developed prototypes before its bankruptcy in mid-2004.Chapman, Phillip Fun-4-All to produce Sesame Street action figures in 2004 MuppetCentral.com (October 27, 2003). Retrieved on 7-17-10. A few months later, Palisades obtained the hot license. The debut of this collection was culminated by the 2005 convention exclusive Super Grover with box art by Alex Ross. As one of the most highly anticipated figure lines at the time, the first series of Sesame Street was intended for a mid-2005 release but came to a stirring delay. In fact, two series of figures were planned, and many photos of the fully developed, packaged figure prototypes were released to the public. But according to Horn, the line would ultimately never come to fruition, due to lack of retailer support. This same problem haunted with The Muppet Show and led to its cancellation that same year.
In January 2004, Palisades acquired Factory X for an undisclosed sum.
On August 1, 2005, Palisades began a partnership with Blister Direct that made them the exclusive distributor of Palisades merchandise in Japan.Cochran, Jay Palisades And Blister Partner For Exclusive Distribution Deal Toy News International (August 1, 2005). Retrieved on November 2, 2008. On September 18, Diamond Comics Distributors became Palisades' sole distributor of North America.Cochran, Jay Palisades Officially Names Diamond As Distributor To Hobby Retail Market Toy News International (September 19, 2005). Retrieved on November 2, 2008.
Throughout mid-late 2002, according to former Palisades toy designer Bryan Wilkinson, reports from China on the in-development line were positive. However, it would later be discovered that Ken Lilly, who was head of Palisades’ product development, had been deceived by a company acting as Palisades' middleman responsible for subcontractor the factory. By this point, a significant percentage of the commission was paid to the middleman, and the other portion was to be paid after contract fulfillment. This middleman apparently had no intention of ever collecting the rest, and instead, kept most of the money while farming out the production to another facility to develop the toys for a fraction of the cost and with no quality control. The middleman never received the rest of its money and vanished when pursued by Palisades.
With numerous errors and mispackaged and defective parts, employees were appalled at the result, but at this stage, financial losses on the part of Palisades would be inevitable. Not only was the Micronauts line affected, but other lines assigned to the factory at the time, such as part of the early The Muppet Show series, suffered though not as heavily.
Adding to the strain was slow shipment due to the U.S. dock workers' union dispute and lockout in October 2002.Cappannari, Andrea and Azul, Rafael US shippers lock out dockworkers on West Coast World Socialist Web Site (September 30, 2002). Retrieved on 7-17-10. Already over-budget Palisades quickly addressed the poor quality but had few resorts and only one employee to handle it. The company could only replace badly damaged returned toys with other poor quality product which, according to Wilkinson, "might have been their worst mistake from a public relations point of view, as some felt that this indicated they were trying to still push and mark up known defective product." Nevertheless, while financial recovery would be impossible, Palisades attempted to salvage their reputation and pride with a second Micronauts series, a retooled Series 1, and a special Series 1.5, working more closely with the manufacturers this time. However, the company lost even more money in doing so, and retailers lost interest. A third series was put in development as a last attempt at redemption but canceled. The Micronauts revival would result in "an albatross for Palisades, their biggest financial loss ever." Fanmode interview: Bryan Wilkinson (part 4) Fanmode (2009). Retrieved on 7-17-10.
In November, a press release by President Mike Horn detailed the long-standing delay on Palisades' hotly anticipated Sesame Street action figure line:
News from the company became scarce in the following months, and it was reported that shortly before Christmas, a large number of key staff members were released. Palisades also did not appear at the 2005 Wizard World Dallas,Cochran, Jay Palisades Toys Will Be Unable To Attend Wizard World Dallas Toy News International (October 26, 2005). Retrieved on November 2, 2008. 2006 UK ToyFair, or 2006 US ToyFair where they would typically have had a significant presence.Adrian What's Happening With Palisades? Action-Figure (January 31, 2006). Retrieved on November 2, 2008.
Finally, on February 1, 2006, Palisades announced its bankruptcy and subsequent sale of the company to Limited by CAS Inc. Horn discussed the situation in a press release noting, "This development parallels a general trend within the toy industry, including the bankruptcy of one of Palisades’ largest customers."Cochran, Jay Changes at Palisades Toy Toy News International (February 1, 2006). Retrieved on November 2, 2008. While Limited continued Palisades' Factory X branch of statues and prop replicas, Horn and his wife were not offered positions in the transaction.
Aside from Sesame Street, the sudden disestablishment of Palisades had left several other planned products left unreleased. Those who bought the first series of Aqua Teen Hunger Force figures, for example, would not be able to complete their set with the second series intended for a February 2006 release. Aqua Teen Hunger Force Action Figures Mania.com (September 7, 2005). Retrieved on November 2, 2008.
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