Disney first announced that the film would be made as an animated feature in 1955, but eventually turned it into the studio's first live action musical. With a script by Lowell S. Hawley, Ward Kimball, and Joe Rinaldi, and Glen MacDonough's operetta, Babes in Toyland marks the first time that Bolger, best known as the Scarecrow in The Wizard of Oz (1939), played a villain. Here, he is the evil Barnaby, who learns that Mary Quite Contrary (Funicello) is unaware that she is going to inherit a fortune. Barnaby is furious that Mary is engaged to marry Tom the Piper's Son (Sands), so in order to get Mary's money for himself, he orders his henchmen to kill Tom and drown Mary's sheep to ruin her. Along for the ride are Little Bo Peep (Jillian) and other Mother Goose characters.
Ward Kimball, a collector of vintage toys, was in charge of the mechanical design team. He was originally set to direct the film, but reportedly had Ray Bolger audition and signed off on set designs without permission from Disney. When a studio publicist put out a trade ad announcing Kimball's assignment with Disney's knowledge, Disney was furious and replaced Kimball with Jack Donohue.
As with most Disney films, it was promoted on the company's television show, Walt Disney's Wonderful World of Color on NBC, where the film's wrap party (the party given to celebrate the end of shooting) was a scripted affair, hosted by Annette Funicello, who with Disney, discussed the film and aired clips.
When it was released in time for Christmas on December 14, 1961, Babes in Toyland was a rare Disney flop and the studio would not attempt another live action musical until Mary Poppins (1964). Critic A.H. Weiler of The New York Times wrote that Babes in Toyland was geared to the "sub-adult set" and not terribly exciting for grownups. Bolger was praised as "the most likable louse we've seen in years," but "Tommy Sands and Miss Funicello are rarely a spirited pair [...] [and] Mr. Wynn points up the film's major fault when he wistfully says, "I'm trying to liven things up with a little humor."
SOURCES:
http://disney.wikia.com/wiki/Babes_in_Toyland
http://movies.disney.com/babes-in-toyland
The Internet Movie Database
Patinkin, Sheldon No Legs, No Jokes, No Chance": A History of the American Musical Theater
Weiler, A.H. Disney's 'Babes in Toyland' Is Holiday Show at Music Hall 15 Dec 61.
Zibart, Eve Today in History: Disney
