Step2 Co. is suing Internet toy retailer eToys Inc. for $267,560.
The Streetsboro, Ohio-based rotational molder filed suit Dec. 28 in U.S. District Court in Akron, Ohio, for past-due payments plus accrued interest since Nov. 15.
Jim Miller, Step2's chief financial officer and vice president of finance, said the firm has attempted to contact the Los Angeles-based retailer several times, but eToys has not returned the calls.
"We hate to go this route, and we struggled with this," Miller said. "We're just trying to protect our interests."
Step2 increased efforts after eToys issued a Dec. 15 news release announcing expectations of lower than estimated fiscal third-quarter operating results, Miller said.
EToys now expects its quarterly net sales to be between $120 million and $130 million rather than the $210 million to $240 million previously estimated. The company anticipated operating losses of between 55-65 percent of its sales, or $66 million to $84.5 million, according to the release. On Oct. 30, eToys had estimated that figure at 22 percent to 28 percent of revenue.
"Based on that, we really stepped up our effort," Miller said.
Because eToys was closed the week of Dec. 25, officials could not be reached for comment.