Schleich Eyes Debt-for-Equity Rescue
- Schleich's creditors plan to convert outstanding debt into equity stakes, filing the restructuring with regulators in Germany and Austria.
- Revenues fell from €275 million in 2022 to an estimated €220 million in 2024 as post-pandemic demand slumped and retailers accumulated excess stock.
- Turnaround manager Manfred Ziegler now leads the 91-year-old firm, which has already abandoned its historic Schwäbisch Gmünd headquarters as part of a cost-cutting drive.
Schleich, the German toy manufacturer best known for its hand-painted figurines of animals, mythical creatures, and licensed characters, is set to undergo a significant change of ownership after creditors agreed in principle to convert their outstanding debt claims into equity stakes in the company. The restructuring plans have already been filed with competition regulators in both Germany and Austria.
Nine decades of brand recognition, two years of falling sales
Founded in Schwäbisch Gmünd in 1935, Schleich has spent the better part of a century building an international following through its detailed plastic figures spanning wildlife, dinosaurs, unicorns, and characters from franchises including the Smurfs, Biene Maja, and Lucky Luke. The company is currently held by Swiss private equity firm Partners Group, which acquired it in 2019 with stated ambitions to drive international expansion.
That strategy was tested severely by a sharp reversal in trading conditions following an initial surge during the pandemic years. Revenues reached €275 million in 2022, but the subsequent squeeze on household budgets — driven by inflation and rising prices — saw consumer demand cool markedly. Retailers were left carrying elevated stock levels, further compressing orders. By 2023, revenues had fallen 14 per cent to €235 million, and are reported to have declined further to approximately €220 million in 2024.
Restructuring and a new leadership mandate
In response to the deterioration, Schleich undertook a substantial operational overhaul. The company relinquished its long-established headquarters in Schwäbisch Gmünd, the Swabian town where it was founded, and installed turnaround specialist Manfred Ziegler as chief executive. The proposed debt-to-equity conversion — under which creditors would surrender their financial claims in exchange for ownership shares, effectively becoming co-owners of the business — is designed to ease the company's debt burden and create the conditions for recovery.
A recovering market, but uncertainty remains
The timing of the proposed transaction coincides with a reported improvement in the global toy market, with sales said to be rising again internationally. Whether Schleich can translate a restructured balance sheet into sustained revenue growth, however, remains unresolved. The brand retains considerable recognition across Europe and beyond, but the road back to the revenues of its recent peak will require more than financial engineering alone.
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