Business Notes BANKRUPTCY

For two years, Teddy Ruxpin, the talking toy bear, has delighted youngsters with tales in which he and his friend Grubby outwit the Mudblups, Bounders and assorted other villains. Too bad Teddy couldn't provide a last-minute rescue or happy ending for his creator, Worlds of Wonder. Last week the two-year-old Fremont, Calif., firm filed for bankruptcy protection. During the six months ending Sept. 30, WOW lost $53.5 million as sales fell to $72.7 million. During the same period a year ago, the firm earned $2.8 million on sales of $85.2 million.

Eager to follow up on the phenomenal success of Teddy and a second hit, the Lazer Tag ray-gun game, WOW has introduced a host of high-tech toys, including talking versions of Mickey Mouse and Mother Goose. But the new products have not generated enough sales to cover promotion costs.