APPLAUSE DREAM LIVES ON SOLOMON MEMORIALIZED; COMPANY TO SURVIVE.

Byline: Brent Hopkins Staff Writer

WOODLAND HILLS - On the same day it memorialized its deceased owner, chairman and chief executive Bob Solomon, struggling plush toy maker Applause LLC vowed to stay in business.

Prior to Solomon's suicide on Aug. 20, the company had already been in what he called a desperate situation. Its sales market had contracted, it had lost key licenses and it was on notice to be out of its Warner Center headquarters by the end of the month. After Solomon took his life, industry observers looked at Applause as all but finished.

But Friday, after somberly paying tribute to the charismatic toy chief, his nephew David Socha said the family planned to keep Applause afloat. The goal, he said, was to keep control in family hands, perhaps one day handing the reins to Sara Solomon, the former owner's 19-year-old daughter.

In the interim, Socha will serve as general manager, rejoining the company that gave him his start in the plush business.

The 34-year-old began at Applause as a sales representative in the late 1980s and now serves as chairman of Santa Clarita-based Beverly Hills Teddy Bear Co.

``It's for the family,'' Socha said. ``This is going to be a challenge. We'll try to be fair to everyone on the whole process. People know the situation that we're in, so we just need people who believe in the dream.''

The company announced that it had downsized from approximately 40 employees to around 25 and that it would move to another San Fernando Valley location, though it did not specify where. It would retain control of its proprietary Dream Pets brand and pursue new licenses in a quest to rebuild the company.

Those who've watched Applause's fortunes over the years offered a mixed assessment on whether it could survive the transition, along with its raft of previous problems.

``Applause has such a strong name behind them, I'd say yes,'' said Rosette Gonzales, assistant editor of TDMonthly, a trade magazine that follows the gift and toy industries. ``But a lot of their strength came from their alliances with companies like Disney and Nickelodeon. It'll be interesting to see what they can do without those licenses.''

Hundreds turned out to Solomon's memorial service at Shepherd of the Hills Church in Porter Ranch on Friday morning. His family recalled him as a challenging, dynamic man who loved his children, his work and the finer things in life. In his various stints in the toy industry, he was known for his passion for his products and a single-minded desire for success, one which occasionally alienated even his close relatives and business confidants.

Without him, Applause still finds itself in a tough situation, lacking the major licenses that brought it millions of dollars in recent years and targeted in numerous lawsuits over alleged failure to pay fees. Auctioneers cleared out much of its Variel Avenue offices this week, selling everything from used display cases to life-size stuffed farm animals to Solomon's eclectically decorated executive office, including a wooden cigar store Indian.

``The family's taking the position that whatever it takes to survive, they'll be behind it,'' said Gerard Casale, Applause's corporate counsel and business adviser. ```Nothing has changed. We intend to aggressively look for new opportunities and support the ones we have going forward.''

Brent Hopkins, [phone]

brent.hopkins(at)dailynews.com