Chad Valley set up their soft toy division in 1920s and Merrythoughts began production in the 1930. The introduction of new materials such as artificial silk, rayon plush and velveteen saw a change in design and production. During the 1940s toys were scarce and mostly made in the home from scraps of material. Wool was rationed and often garments were unravelled and re-used to knit toys.

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