Editing Coleco (section)

==Overview==
=== 1932: origins as The Connecticut Leather Company ===
Coleco Industries, Inc. began in 1932 as The Connecticut Leather Company. The business supplied leather and "shoe findings" (the supplies and paraphernalia of a shoe repair shop) to shoe repairers.<ref name="Coleco 1932-1982">{{cite book|title=Coleco 1932–1982|date=1982|publisher=Coleco Industries, Inc.}}</ref> In 1938, the company began selling rubber footwear.  During [[World War II]] demand for the company's supplies increased and by the end of the war, the company was larger and had expanded into new and used shoe machinery, hat cleaning equipment and marble shoeshine stands.

=== 1950s: leather diversification ===
By the early 1950s, and thanks to Maurice Greenberg's son, Leonard Greenberg, the company had diversified further and was making leather lacing and [[leathercraft]] kits. In 1954, at the New York Toy Fair, their leather moccasin kit was selected as a Child Guidance Prestige Toy, and Connecticut Leather Company decided to commit to the toy business. In 1956, Leonard read about the emerging technology of vacuum formed plastic; the company adopted this and it became increasingly successful, producing a wide variety of plastic toys and wading pools.

=== 1961: Coleco Industries, Inc. ===
In 1961, the leather and shoe findings portion of the business was sold,<ref>{{cite news |title=Coleco moves out of the cabbage patch |work=The New York Times |date=1985-07-21 |url=https://www.nytimes.com/1985/07/21/business/coleco-moves-out-of-the-cabbage-patch.html?&pagewanted=all |access-date=2023-11-14 |first=N. R. |last=Kleinfield |url-access=limited |url-status=live |archive-url=https://web.archive.org/web/20231016012458/https://www.nytimes.com/1985/07/21/business/coleco-moves-out-of-the-cabbage-patch.html?&pagewanted=all |archive-date=2023-10-16}}</ref> and Connecticut Leather Company became Coleco Industries, Inc, An abbreviation of "'''Co'''nnecticut '''Le'''ather '''Co'''mpany". On January 9, 1962, Coleco went public, offering 120,000 shares of stock at $5.00 a share.<ref>{{cite news |title=60 Million Raised by N.Y. Telephone |work=The New York Times |page=83 |date=1962-01-10 |url=https://www.proquest.com/docview/115818221 |via=ProQuest |url-access=subscription |access-date=2022-03-25 |id={{ProQuest|115818221}}}}</ref>

=== 1960s: acquisitions ===
In 1963, the company acquired the Kestral Corporation of [[Springfield, Massachusetts]], a manufacturer of inflatable vinyl pools and toys. This led to Coleco becoming the largest manufacturer of above-ground [[Swimming pool#Private pools|swimming pools]] in the world.

In 1966, Leonard persuaded his brother [[Arnold Greenberg (Coleco)|Arnold Greenberg]] to join the company. Further acquisitions included Playtime Products (1966) and Eagle Toys of Canada (1968). By the end of the 1960s, Coleco operated ten manufacturing facilities and occupied a new corporate headquarters in Hartford, Connecticut.

=== 1970s: financial difficulties and further diversification ===
Coleco experienced financial difficulty during the 1970s, even though sales had grown to $48.6 million in 1971. In 1972, Coleco entered the snowmobile market through acquisition. Lower than expected snowfall that year and market conditions led to very reduced sales and poor profits.

Dozens of companies rushed to introduce game systems after the release of [[Atari]]'s successful ''[[Pong]]'' console and the company entered the [[video game console]] business with the [[Coleco Telstar|Telstar]]. Nearly all of the new game systems were based on [[General Instrument]]'s "''Pong''-on-a-chip". General Instrument had underestimated demand, resulting in severe shortages. However, Coleco was one of the first to place an order and therefore one of the few companies to receive the full order. Though dedicated game consoles did not last long on the market, their early order enabled Coleco to [[break-even|break even]].

=== Late 1970s: handheld electronic games ===
Coleco continued to perform well in electronics. The company transitioned into [[handheld electronic game]]s, a market popularized by [[Mattel]]. An early success was ''[[Electronic Quarterback]]''. Coleco produced two popular lines of games, the "head to head" series of two player sports games (''Football'', ''Baseball'', ''Basketball'', ''Soccer'', ''Hockey'', ''Boxing'') and the Mini-Arcade series of licensed [[Arcade game|video arcade]] titles such as ''[[Donkey Kong (1981 video game)|Donkey Kong]]'' and ''[[Ms. Pac-Man]]''. A third line of educational handhelds was also produced and included the Electronic Learning Machine, ''Lil Genius'', ''Digits'', and a trivia game called ''Quiz Wiz''.<ref>{{cite web |url=https://www.handheldmuseum.com/Coleco |title=Coleco Handheld Games |publisher=Handheld Museum |access-date=2023-11-14 |url-status=live |archive-url=https://web.archive.org/web/20231016014901/https://www.handheldmuseum.com/Coleco/ |archive-date=2023-10-16}}</ref> Launched in 1982, their first four [[handheld electronic game|tabletop]] Mini-Arcades, for ''[[Pac-Man]]'', ''[[Galaxian]]'', ''Donkey Kong'', and ''[[Frogger]]'', sold approximately three million units within a year.<ref name="eg_16_10">{{cite journal |title=More Mini-Arcades A Comin' |journal=[[Electronic Games]] |date=June 1983 |volume=4 |issue=16 |url=https://archive.org/details/Electronic_Games_Volume_01_Number_16_1983-06_Reese_Communications_US/page/n9 |access-date=2023-11-14 |page=10}}</ref> Among these, 1.5 million units were sold for ''Pac-Man'' alone.<ref>{{cite journal |title=Mini-Arcades 'Go Gold' |journal=[[Electronic Games]] |date=November 1982 |volume=1 |issue=9 |url=https://archive.org/details/Electronic_Games_Volume_01_Number_09_1982-11_Reese_Communications_US/page/n11/mode/2up |access-date=2023-11-14 |page=12}}</ref><ref>{{cite journal |title=Coleco Mini-Arcades Go Gold |journal=Arcade Express |date=August 15, 1982 |volume=1 |issue=1 |url=https://www.digitpress.com/library/newsletters/arcadeexpress/arcade_express_v1n1.pdf |archive-url=https://web.archive.org/web/20120914135153/https://www.digitpress.com/library/newsletters/arcadeexpress/arcade_express_v1n1.pdf |archive-date=2012-09-14 |url-status=live |access-date=2023-11-14 |page=4}}</ref> In 1983, it released three more Mini-Arcades: ''Ms. Pac-Man'', ''[[Donkey Kong Jr.|Donkey Kong Junior]]'', and ''[[Zaxxon]]''.<ref name="eg_16_10"/>

[[Image:ColecoVision-wController-L.jpg|thumb|right|The [[ColecoVision]] video game console]]

Coleco returned to the video game console market in 1982 with the launch of the [[ColecoVision]].<ref name="NGen15">{{cite magazine |title=The Next Generation 1996 Lexicon A to Z: Coleco |magazine=[[Next Generation (magazine)|Next Generation]] |issue=15  |publisher=[[Imagine Media]] |date=March 1996 |page=31 |url=https://archive.org/details/nextgen-issue-015/page/n31/mode/2up |access-date=2023-11-14}}</ref> The system was quite popular and more powerful than the [[Atari 2600]],<ref>{{cite magazine |title=The Next Generation 1996 Lexicon A to Z: ColecoVision |magazine=[[Next Generation (magazine)|Next Generation]] |issue=15 |publisher=[[Imagine Media]] |date=March 1996 |page=31 |url=https://archive.org/details/nextgen-issue-015/page/n31/mode/2up |access-date=2023-11-14}}</ref> and came bundled with a copy of ''Donkey Kong''.<ref>{{cite news |last1=McFerran |first1=Damien |title=Feature: How ColecoVision Became the King of Kong |url=https://www.nintendolife.com/news/2010/09/feature_how_colecovision_became_the_king_of_kong |url-status=live |work=[[Nintendo Life]] |date=18 September 2010 |access-date=2023-11-14 |archive-url=https://web.archive.org/web/20231004145625/https://www.nintendolife.com/news/2010/09/feature_how_colecovision_became_the_king_of_kong |archive-date=2023-10-04}}</ref> The console sold 560,000 units in 1982. Coleco also hedged its bet on video games by introducing a line of [[ROM cartridge]]s for the Atari 2600 and [[Intellivision]], selling six million cartridges for both systems, along with two million sold for the ColecoVision for a total of eight million cartridges sold in 1982. It also introduced the [[Coleco Gemini]], a clone of the popular Atari 2600, which came bundled with a copy of ''Donkey Kong''.<ref>{{cite book |title=1982 Annual Report |date=April 8, 1983 |publisher=Coleco |pages=3–4, 17}}</ref>

When the [[Video game crash of 1983|video game business began to implode in 1983]], it seemed clear that video game consoles were being supplanted by [[home computer]]s. Bob Greenberg, son of Leonard Greenberg and nephew of Arnold Greenberg, left Microsoft where he had been working as a program developer at the time to assist in Coleco's entry into this market. Coleco's strategy was to introduce the [[Coleco Adam]] home computer, both as a stand-alone system and as an expansion module to the ColecoVision. The effort failed, in part because Adams were often unreliable due to being released with critical bugs,<ref>{{cite web |last=Modine |first=Austin |title=Remembering the Coleco Adam |url=https://www.theregister.com/2008/02/04/tob_coleco_adam/ |website=www.theregister.com |language=en |url-status=live |access-date=2023-11-14 |archive-url=https://web.archive.org/web/20231016031601/https://www.theregister.com/2008/02/04/tob_coleco_adam/ |archive-date=2023-10-16}}</ref> and in part because the computer's release coincided with the home computer industry crashing.<ref name="NGen15"/> Coleco withdrew from electronics early in 1985.<ref name="Woutat"/>

=== 1983: Cabbage Patch Kids ===
In 1983, Coleco released the [[Cabbage Patch Kids]] series of dolls which were wildly successful.<ref>{{cite web |url=https://www.accessnorthga.com/detail.php?n=213040&c=10 |url-status=dead |title=Cleveland's Cabbage Patch Kids turn 25 |publisher=AccessNorthGA.com |date=2008-09-07 |access-date=2010-08-07 |archive-date=December 5, 2014 |archive-url=https://web.archive.org/web/20141205111035/https://www.accessnorthga.com/detail.php?n=213040&c=10}}</ref> In the same year, [[Dr. Seuss]] signed a deal with Coleco to design a line of toys, including home video games based on his characters. Flush with success, Coleco purchased Leisure Dynamics (manufacturer of the board games [[Aggravation (board game)|''Aggravation'']] and [[Perfection (board game)|''Perfection'']]) and beleaguered [[Selchow and Righter]], manufacturers of ''[[Scrabble]]'', ''[[Parcheesi]]'', and ''[[Trivial Pursuit]]'', in 1986.<ref>{{Cite news |pages=1–3 |last=Richter |first=M. J. |title=Coleco Buys Toy Producer |work=Hartford Courant |date=1985-12-19 |via=Newspapers.com |url=https://www.newspapers.com/image/369350221 |url-access=subscription}}</ref><ref>{{Cite news |url=https://apnews.com/fb79224ccd80114bab45e41ee0935b75 |url-status=dead |title=Coleco Acquires Selchow & Righter |newspaper=AP (Associated Press) |date=1986-05-05 |access-date=2023-11-14 |archive-url=https://web.archive.org/web/20190810210513/https://apnews.com/fb79224ccd80114bab45e41ee0935b75 |archive-date=2019-08-10}}</ref> Sales of Selchow & Righter games had plummeted, leaving them with warehouses full of unsold games. The purchase price for Selchow & Righter was $75 million. That same year, Coleco introduced an ALF plush, based on the furry alien character who had [[ALF (TV series)|his own television series]] at the time, as well as a talking version and a cassette-playing "Storytelling ALF" doll.<ref>{{cite news |title=Coleco Plays The Odds, Pays For Ads For 'Alf' |newspaper=The Los Angeles Times |date=1986-08-26 |url= https://www.latimes.com/archives/la-xpm-1986-08-26-ca-17809-story.html |url-status=live |access-date=2023-11-14 |first=Morgan |last=Gendel |url-access=limited |archive-url=https://web.archive.org/web/20231016041512/https://www.latimes.com/archives/la-xpm-1986-08-26-ca-17809-story.html |archive-date=2023-10-16}}</ref>

=== 1988: bankruptcy and sale ===
The combination of the purchase of Selchow & Righter, the disastrous Adam computer, and the public's waning infatuation with Cabbage Patch Dolls all contributed to Coleco's financial decline. In 1988, the company filed for [[Chapter 11, Title 11, United States Code|Chapter 11]] bankruptcy.<ref>{{cite news |title=Cabbage Patch Doll Maker Is Bankrupt |newspaper=The Los Angeles Times |date=1988-07-12 |url= https://www.latimes.com/archives/la-xpm-1988-07-12-mn-5746-story.html |url-status=live |access-date=2023-11-14 |url-access=limited |archive-url=https://web.archive.org/web/20230505062631/https://www.latimes.com/archives/la-xpm-1988-07-12-mn-5746-story.html |archive-date=2023-05-05}}</ref>

[[File:Coleco building Amsterdam New York.jpg|thumb|The abandoned Coleco building in Amsterdam, New York]]
The reorganized Coleco sold off all of its North American assets and outsourced thousands of jobs to foreign countries, closing plants in [[Amsterdam, New York]] and other cities.<ref>{{cite news |title=Briefly |newspaper=The Los Angeles Times |date=1988-07-04 |url=https://www.latimes.com/archives/la-xpm-1988-07-04-fi-4010-story.html |url-status=live |url-access=limited |access-date=2023-11-14 |archive-url=https://web.archive.org/web/20231016040522/https://www.latimes.com/archives/la-xpm-1988-07-04-fi-4010-story.html |archive-date=2023-10-16}}</ref>

In 1988, Canada-based SLM Action Sports Inc. purchased Coleco's swimming pool and snow goods divisions.<ref name=nytimes2>{{cite news |url=https://www.nytimes.com/1988/06/10/business/company-news-slm-action-sports-buys-coleco-units.html |url-status=live |title=SLM Action Sports Buys Coleco Units |access-date=2023-11-14 |newspaper=The New York Times | date=1988-06-10 |url-access=limited |archive-url=https://web.archive.org/web/20231016012501/https://www.nytimes.com/1988/06/10/business/company-news-slm-action-sports-buys-coleco-units.html |archive-date=2023-10-16}}</ref>

In 1989, [[Hasbro]] purchased most of Coleco's remaining product lines.<ref name=nytimes>{{cite news |url=https://www.nytimes.com/1989/07/13/business/company-news-hasbro-s-purchase-of-coleco-s-assets.html |url-status=live |url-access=limited |title=Hasbro's Purchase Of Coleco's Assets |access-date=2023-11-14 |newspaper=The New York Times |date=1989-07-13 |archive-url=https://web.archive.org/web/20230701083513/https://www.nytimes.com/1989/07/13/business/company-news-hasbro-s-purchase-of-coleco-s-assets.html |archive-date=2023-07-01}}</ref>