Photo: JENS MEYER/ AP
The business is not child's play at the moment: The Upper Franconian toy manufacturer Haba Sales GmbH & Co. KG has filed an application for insolvency in self-administration at the Coburg District Court. The court had ordered provisional self-administration. This was announced by the company, which is based in Bad Rodach in the district of Coburg.
"The application for debtor-in-possession proceedings was anything but easy for us," said Managing Director Mario Wilhelm. However, in the tense economic situation, it is the only way for the company to regain its former strength.
In contrast to regular insolvency proceedings, there is no insolvency administrator in self-administration, but a so-called trustee who accompanies and monitors the proceedings. According to Haba, this task will be taken over by Tobias Sorg from the law firm dmp solutions. The management at Haba will remain in office. Business operations will continue "as usual," the company said.
It was only in August that the toy manufacturer announced that the Jako-o brand would be discontinued. Under the Jako-o brand, the company had previously operated an online shop and mail order business with a specialized range of clothing, shoes, toys and furniture for children and babies.
Expansion goals are a thing of the past
The Haba Family Group is currently undergoing the largest restructuring in the company's more than 85-year history, it said. The Upper Franconian toy manufacturer had previously reorganized its management team and announced large-scale job cuts.
The company had "massively felt the difficult economic conditions as an impact of the Covid pandemic," it said in a statement. Just a few years ago, the company had announced ambitious expansion targets. Sales were to be increased from 360 million euros to 500 million euros and Jako-o was to be launched in ten neighbouring European countries. Instead, the brand is buried.
According to its own figures, around 2000 people work for the Haba Family Group.