Retailers that helped turn Bratz into a sensation when the pouty-lipped dolls first appeared in 2001 are giving the line a chillier reception for this holiday season.

Target Corp. and Wal-Mart Stores Inc. have both reduced stocks and shelf space for Bratz, with Target cutting its Bratz space by about 50%, according to the retailer. A key reason for the waning retailer enthusiasm is that Bratz sales have been slipping. Analysts expect Bratz, made by closely held MGA Entertainment Inc. of Van Nuys, Calif., to generate about $300 million in revenue this year, down from an estimated $400 million last year.

But there’s another reason for Bratz’s decline. MGA was distracted this year as it battled a lawsuit from Mattel Inc., which claimed MGA stole the idea for the dolls from the toy giant. In July, a federal jury sided with Mattel and later awarded the company as much as $100 million in damages. M

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