Steinbach Declared Bankruptcy in 2015

by | Jan 11, 2018 | Blog | 0 comments

After 200 years of producing the best German Nutcrackers Steinbach took a bow in 2015. The company that was Located in Hohenhamein in Eastern Germany filed for bankruptcy siting being unable to pay the increased minimum wage.

The company that was being run by Karla Steinbach has been in her family for six generations. It was one of the best producers of traditional wooden nutcrackers that managed to maintain its authenticity even in the wake of many less than average brands. It is known for its pioneering creativity in the nut crackers industry as it introduced the carvings of popular leaders across the world as well as German heroes when nutcrackers were mainly of soldiers, kings and knights. They became very popular for their diversity and therefore a favorite brand for many Nutcrackers collectors.

Year after year they came up with different editions as enthusiast looked forward to them. They then introduced the limited edition version with the first being that of King Ludwig the second that was a great hit with the collectors. They produced only 3000 of them and they were sold out fast. The company flourished due to its creativity as it kept up with the current trends. However the popularity of the Nutcrackers was seen as a business opportunity and many companies came up to make knock offs of these products. In the 2010s the company was barely getting by, but it was the increase of minimum wage that was the last stroke.

The new law that was implemented on January 1st 2015 increased the minimum wage to 9.65 dollars an hour. Speaking to Hildesheimer Allegemeine newspaper, Karla said that she paid her employees 6.25 to 6.5 dollars before the increase in the minimum wage. The company which has 120 workers had to have an increase of 27% in labor costs and just couldn’t keep up. After trying to stay afloat all through 2015, the company had to shut its doors for good in October.

There has therefore not been any production of the Steinbach Nutcracker however their products are still in the market. This came as sad news for the Steinbach Nutcracker enthusiasts but according to Karla, filling for bankruptcy was the only option out of the situation. With the many fake brands around and the closure of one of the best producers of German Nutcrackers, collectors are left wondering which other brand they should try out to get authentic German Nutcrackers.

The Ulbricht Nutcracker company which has been around almost as long as the Steinbach is a good option to try if you want to get authentic German Nutcrackers. The company still produces hand crafted nutcrackers and has still maintained its standard from before where good quality products are produced. The company which is now owned by Gunther Ulbricht, the third generation son of the Ulbricht family is the best option if you are one of those collectors who believe that not just any nut cracker will do.

Try the Ulbricht nutcracker and keep the spirit that was intended by the original nutcracker creators.

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