Playthings - Schleich's venture into an upscale setting faces backlash.
The mayor of Schwaebisch Gmuend, Richard Arnold (CDU), has responded to Schleich, a toy manufacturer, relocating to Munich. Arnold commented on Wednesday, "When they leave, an age-old tradition will be broken. We can't provide the Schickimicki environment like Munich." The city had supported the employees and sympathized with them in their fight for the location.
Schleich, a midsize firm, plans to shift their headquarters to the Bavarian state capital by January 1, 2025. The announcement was made on Tuesday. The business was established in 1935 by Friedrich Schleich in the commune of eastern Wuerttemberg.
241 individuals impacted by the move
Since 2009, Arnold has been the mayor of Schwaebisch Gmuend. He added that he'd conversed with the Schleich sales manager, who'd said the premises would be entirely closed by the year's end. "The consequences affect 241 people and their families directly." Schwaebisch Gmuend has played a vital part in the company's substance.
A spokeswoman for the Economy Ministry confirmed they'd learned about it from the media rather than just the reloacation of the company's headquarters to Munich, but also of the transfer of entire departments abroad. "The reasoning for this move cannot be comprehended yet, based on the available information." Schleich has endured numerous economic challenges as a 90-year-old traditional company, with Schwaebisch Gmuend's employees having contributed significantly since then. "The Economy Ministry will endeavor to contact the company as soon as possible to learn the precise reasons for this announcement." It remains possible that more information may come to light on this matter. Schwaebisch Gmuend is an exceptional economic location.
Green party leader Ricarda Lang expressed regret over Schleich's planned closure. "It's unfair that the works council wasn't involved earlier." Lang, who represents this constituency in Schwaebisch Gmuend, remarked, "Now it's about finding a good solution for the 241 employees and their families. Those who opt to join the company in Munich or Prague, as well as the majority who stay in Schwaebisch Gmuend."
Schleich is mostly owned by a Swiss financial investor and is one of the largest German toy manufacturers. Manufacturing prototypes in Schwaebisch Gmuend, along with parts of marketing and sales, continue. Schleich's Munich office has existed since 2021. They plan to relocate to Prague, which will take charge of financial operations and customer service, as well as logistics. The firm revealed this on Tuesday. Employees in Schwaebisch Gmuend will be given the chance to switch to these new facilities.
Revenue decline started in 2023
Arnold added, "Ever since 2013, we'd been setting sales record after sales record. The dip only occurred last year." The revenue was reduced by approximately 15% to €234 million. Dampened consumer demand was cited as one reason for the decline. The number of sold figures was more than 10% lower, at around 35 million units. The company normally refrains from discussing its earnings. Schleich distributes their figures and playsets in 60 countries and generates more than 60% of its income beyond Germany.
Arnold stated, "Schleich is one of our top five corporate taxpayers." The mayor intends to arrange an action day, as well as engage state and federal-level politics to attract attention to this matter.
Press release Annual figures Factsheet Schleich
Read also:
- Tough return to normality in snow and ice
- Fewer unauthorized entries: Domino effect through controls
- Trial against BND employee from mid-December
- Arrangement generates buzz: Rheinmetall becomes backer of BVB
- The controversy surrounding Schleich's decision to relocate their headquarters to Munich has also reached the ears of the mayor of Baden-Württemberg's Schwäbisch Gmünd, Richard Arnold (CDU).
- The move will affect 241 individuals directly, including their families, as confirmed by Arnold, who has been mayor since 2009.
- Schleich's sales manager mentioned that the entire facility in Schwäbisch Gmünd will be closed by the end of the year, which is a significant blow to the city.
- BMWi, the German Ministry of Economy, has expressed interest in understanding why Schleich chose to relocate, citing the historical contribution of Schwäbisch Gmünd's employees to the company.
- German Green Party leader Ricarda Lang expressed her regret over Schleich's planned closure, emphasizing the need for a fair solution for the impacted employees.
- Schleich's decision to relocate some departments abroad, including financial operations and customer service, sparked concern among regional leaders like Lang.
- Schleich, which is mostly owned by a Swiss financial investor, will maintain some operations in Schwäbisch Gmünd, such as manufacturing prototypes and parts of marketing and sales.
- The relocation to Prague will allow Schleich to centralize financial operations, customer service, and logistics, providing an opportunity for some Schwäbisch Gmünd employees to join these new facilities.
Source:
