Franz Carl Weber is back on his own feet

Franz Carl Weber (Image: Walter Bieri / Keystone)

Franz Carl Weber enters new hands. An investor group led by company president Yves Burger will take over all the shares of the toy retailer of the former owner, the French Ludendo, for an undisclosed price. In addition to Burger, buyers include entrepreneur Marcel Dobler and German toy maker Simba Dickie. The three parties each obtained 33% of Franz-Carl-Weber-Capital. With this change of hands, they hope to ensure the sustainability of the traditional Swiss enterprise

Confusion Intermezzo

A cup of Ludendo was considered as an option or an urgent need, after the parent company has joined in March of this year the Commercial Court of Paris had filed for bankruptcy. The Group – second largest toy manufacturer in France – had accumulated a debt of 150 million euros in 2017 with a turnover of 460 million euros and was no longer able to to face time in the service of his debt. Now, Ludendo will be forced to significantly reduce the network of stores. And just as inevitable will be the withdrawal of markets in Belgium and Switzerland.

Yves Burger, co-owner Franz Carl Weber. (Photo: PD)

Immediately before the change of hands, a bizarre interlude had come. The press office of Franz Carl Weber had sent an e-mail Thursday morning, with a padlock until Friday morning, 4 hours during which the transaction had been announced. On Thursday evening, the company then sent a new message saying that the first notice should be removed and that the media should refrain from any planned publication. Not surprisingly, they began to speculate in the press if the case broke out, which worried some employees of Franz-Carl-Weber. On Friday, it was finally announced that a flaw in the sales documents had led the Ludendo trustee in Paris to stop the proceedings – a problem that could be resolved until Friday afternoon, to general relief.

Marcel Dobler, co-owner Franz Carl Weber. (Image: Christoph Ruckstuhl / NZZ)

After the demolition of the parent company, the question arises as to whether Franz Carl Weber can succeed as an independent company in the local market. Faced with the structural evolution of the toy market, digitalisation, which has affected not only the products but more than ever the distribution channels, the stakes are considerable. The Swiss toy market as a whole is fairly stable. According to the GfK market research institute, sales rose 2% in 2017 to reach CHF 470 million (Q1 2015: CHF 460 million). In 2014, the product amounted to CHF 450 million.

Franz Carl Weber has not, however, been able to follow this general expansion. According to GfK, the company, which operates a total of 19 stores in Switzerland, achieved a turnover of 52 million, down 7% over the previous year; In 2016, it was 56 million and in 2015 58 million francs. One of the reasons for this reduction is perhaps that the Zurich branch, the main workhorse of the company, has been moved from Bahnhofstrasse to Bahnhofplatz, a place less frequented by tourists than that of the main shopping street. but the drop in the turnover is probably due to structural reasons; a traditional company like Franz Carl Weber faces wide competition. On one side, there are large distributors who dig up water in specialty stores (not just in toys). The Migros, Coop and Manor groups should cover 60% of the toy market. And also the discounters Aldi and Lidl carry toys in their assortment; on the price front, there should be little room for improvement in these circumstances. Add to this – on the other side – online providers such as Amazon or Brack, but also small specialized platforms such as Toys.ch or Toysland.ch. Niche suppliers such as Cuboro (wooden caterpillars) or Trauffer (cows made of wood) may be able to escape such a harsh wind. However, a medium-sized company like Franz Carl Weber is much more exposed to the elements

Securing digital competence

Marcel Dobler is co-owner in order to make up for the delay that Franz Carl Weber has on the competition in numerical terms Advice brought . He was one of the founders of the e-commerce company Digitec, has long been the CEO, but he left when, in 2015, Migros acquired a majority stake in the company. – Another challenge is the loss of shopping opportunities around the world that Ludendo had previously offered to the Swiss. This tooth should be compensated by Simba Dickie, who makes his purchases on a global scale. The new owners will ensure access to public markets, particularly in Asia, which are essential to exploit a private label segment such as that of Franz Carl Weber.