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American Girl closing Middleton headquarters

Work will be moved to Mattel offices in California

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A young shopper scopes merchandise at the annual American Girl Benefit.
A young shopper scopes the merchandise at the Madison Children’s Museum’s annual American Girl Benefit in 2018. For more than 35 years, proceeds from the sale have benefited the museum and arts programming for Dane County kids. Photo courtesy of the Madison Children’s Museum

American Girl is closing its Middleton headquarters after nearly four decades. It’s moving the work to its parent company, Mattel, in El Segundo, California. 

Mattel announced the plans earlier this week. A company spokesperson said the decision will “further align the company’s talent, drive innovation, and improve efficiencies.”

About 30 people are expected to lose their jobs when the Middleton office closes in late spring. 

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Middleton Mayor Emily Kuhn said she regrets the loss of the beloved American Girl headquarters.

“Their presence has been an integral part of our community and their departure marks the end of an era,” Kuhn said.

American Girl will continue to employ about 220 people between remote workers and those at its DeForest distribution center, the spokesperson said.

“American Girl was founded in Madison 38 years ago and has made an indelible mark on the community and the millions of girls we serve so passionately,” the spokesperson said in a statement sent to WPR. “We express our deep gratitude for the positive impact our team has made on the brand and in the community. Their contributions and service remain an important and lasting part of the American Girl legacy.”

The company was founded in Middleton in 1986 by Pleasant Rowland, a former educator and reporter. The Pleasant Company began by marketing history-themed dolls, books and accessories.

Toy company giant Mattel purchased American Girl from the Pleasant Company for $700 million in 1998. At the time, the company had an annual revenue of $300 million.

According to Mattel’s fourth quarter earnings report, sales in the American Girls business segment decreased 6 percent. Earlier this month, Mattel shareholders called on the company to sell off American Girl, after years of declining sales.