FREMONT, CALIF., DEC. 21 -- Worlds of Wonder Inc., the once-prosperous toy maker that failed to come up with a hit product after Teddy Ruxpin and Lazer Tag, said today it filed for reorganization under Chapter 11 of the Federal Bankruptcy Act.

Chairman Donald D. Kingsborough said the company would continue operating and developing new toys while a new business plan was being worked out.

Worlds of Wonder's stock, which hit a high of $29 a share in June 1986, dropped 25 cents a share to $1.12 1/2 on the national over-the-counter market today before the bankruptcy filing was announced.

Kingsborough indicated the company had been affected this year by the general sluggishness in the retail toy industry, among other factors.

Worlds of Wonder already has undertaken employe layoffs and other cost-cutting measures.

Worlds of Wonder was the fastest growing startup company in U.S. history based on sales for its first two years, largely the result of phenomenal success with Teddy Ruxpin, an electronic talking bear, and the high-tech electronic game Lazer Tag.

But the entire toy industry has been plagued by falling sales this year.

In November, Worlds of Wonder reported a $43 million loss for the three-month period that ended Sept. 30 and predicted a net loss for its fiscal year.