Toy manufacturer Rolly Toys closes plant in Neustadt bei Coburg – over 100 employees affected

Reasons for the crisis

Rolly Toys has been active as a toy manufacturer for over 80 years. As recently as January, the manufacturer had presented itself at the Nuremberg Toy Fair. The closure now announced comes as a surprise to many observers.

As reasons for the economic difficulties, the company cited increased energy prices and the tariff policy of the USA, among other things. The management initially left open which of the two burdens weighed more heavily. Nothing was initially known about a possible sale of parts of the company or the brand.

With the plant in Neustadt bei Coburg, the Upper Franconia region is losing a long-established manufacturer of children's toys. The effects on suppliers and the local economy are likely to be felt beyond the directly affected employees. According to the company, the employees were informed about the planned shutdown; details on social plans and severance payments had not yet been determined.

Consequences for the region and the employees

With the end of the site, a piece of German toy tradition disappears. Brands such as Rolly Toys have stood for decades for children's toys "Made in Germany" and have been exported to many European countries through specialist retailers. Whether the brand can be continued under new management is currently open.

The closure is part of a series of insolvencies and plant closures in the German Mittelstand, in which manufacturers cite rising energy and raw material costs as well as tougher trading conditions. Industry associations see this as a warning signal for the competitiveness of the German toy industry.

Employees, the works council, and unions are now calling for transparent negotiations on social benefits and an orderly closure as possible. Local politicians have pledged their support for the affected staff members. The management of Franz Schneider was initially unavailable for comment.