FUTURE OF APPLAUSE UNCERTAIN CEO'S DEATH RATTLES ALREADY SHAKEN FIRM.

Byline: Brent Hopkins Staff Writer

WOODLAND HILLS - Bob Solomon was more than just the head of Applause LLC, so his suicide last week left the stuffed-animal maker with an uncertain future on Monday.

The charismatic Solomon not only served as chairman and chief executive officer, he was the sole owner, intricately linked to the company's operations. After returning three years ago to revive Applause from bankruptcy, he'd built the company around his strong-willed personality, often parting ways with executives who disagreed with him.

Attrition and layoffs had bled the company down to around 40 employees, who were at work on Monday. Without Solomon's hand on the helm, a brand whose history goes back decades finds itself on uncertain ground.

``He was the company,'' said Jim Silver, publisher of Toy Wishes magazine. ``The company was in a terrible position beforehand, so I'd say either it gets sold or just closes. I wouldn't expect it to continue without him, because when you thought of Applause, you thought of Bob.''

Hit with several lawsuits, an eviction notice and a ravaged toy market to sell to, the company had run into what Solomon called ``a desperate situation.'' He seemed poised to make a deal to keep the company afloat, repositioning it so he could keep his proprietary brands like the miniature Dream Pets, but nothing materialized.

Corporate attorney Gerard Casale said Monday that the company was exploring alternatives to keep operating, but the prognosis in the industry looked unfavorable.

``The fact that the company had financial difficulties makes it hard,'' said Arnie Rubin, chief executive officer of Funrise Toy Co., Applause's neighbor on Variel Ave. ``If the company was in trouble with him, it's going to be in even more without him. It's going to be a real uphill battle for them.''

It's not unheard of for businesses to hang on after the loss of a hands-on leader - gift maker Russ Berrie, mentioned by several industry watchers as a possible Applause suitor, successfully returned after the company's namesake died suddenly several years ago. Casale said a turnaround team had been in place at Applause for several months, but said he was unable to provide details about its plans.

Though the company lost its major licenses in recent months, it still holds agreements to manufacture Peanuts, Raggedy Ann and Andy, Betty Boop and ``The Simpsons,'' along with its own plush lines. Though a bankruptcy would endanger the licenses, according to New York-based toy consultant Chris Byrne, they still make Applause a viable company as long as they continue operating.

Wallace Berrie, a longtime veteran of the gift world and brother of Russ Berrie, said that in the right hands the company could rise again. The plush-toy company he founded bought Applause in 1982, then took on its name, and he followed its progress over the years. Now retired, he said the company was in trouble, but wasn't finished yet.

``Applause has been through an awful lot and I don't know what resources they have, if any,'' Berrie said. ``I don't know if the properties they have are of any value, but it may be that the licenses they have left could be worth something in the hands of a talented individual.''

Brent Hopkins, [phone]

brent.hopkins(at)dailynews.com