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The Palitoy company was established in 1919 by Alfred Pallet and based in Coalville, Leicestershire. It was originally known as the Cascelloid Company and produced celluloid and fancy goods, with their first toy, a windmill, being produced in 1920.


In 1931, Cascelloid was bought out by British Xylonite and in 1935 the name "Palitoy" was trademarked to become the toy division of British Xylonite. In 1968, Palitoy was sold to General Mills, before becoming the Palitoy Company in 1980.

The Palitoy company were one of the UK's leading toy manufacturers, producing many well known toys, such as Action Man, Tiny Tears, Care Bears, Star Wars figures and a large number of different board games.

The original founder, Alfred Pallet, died in 1982 and by the early eighties most of the production had transferred overseas to reduce costs. In 1984 the design and development departments were shut down and the Palitoy company ceased trading in 1986. The factory, along with the remaining toy moulds and intellectual property, was bought by Hasbro.