In a surprising twist, the trademark of Hans Christian Andersen, Denmark's "father of modern fairy tales," has been registered by a Wenzhou native. According to an official from Andersen Children's Products Co., Ltd., the brand entered the Chinese market and, within two years, had expanded to nearly 200 stores nationwide. Some stores reportedly achieved daily sales of up to 20,000 yuan, with customers drawn in by the Danish brand’s reputation.
However, recent rumors have spread rapidly through the industry, claiming that the company is facing a crisis. Reports suggest that some shareholders are divided, and goods have been moved out of stores. The company's marketing center in Wenzhou’s Huameng Business Center has now closed, and the general manager, Chen Songru, remains unreachable. A source from the company revealed that stores in Yueqing no longer receive supplies from the franchise, and goods in the Wenzhou warehouse have been seized by a creditor.
The brand’s operations are now managed by a general agent in Nanjing. When asked about the situation, a corporate representative, Chen Guopeng, stated that he is not involved in the company’s daily operations and does not have detailed information. He mentioned that there are about four major shareholders, with Chen Songru being the real decision-maker. However, creditors have not been able to contact Chen for several months.
A supplier from Zhu said they have been trying to collect debts since last year but have been unsuccessful. Another creditor shared that Chen signed a loan agreement where the "Andersen" brand was mortgaged. Now, the creditor is preparing to either transfer the trademark or find a financially stable partner to take over the brand.
Industry insiders speculate that the company has faced internal conflicts, with some shareholders opposing potential partnerships. In fact, as early as late last year, Chen Songru sought collaborations to turn the business around. Although initial talks were promising, disagreements among shareholders led to the deal falling through.
An employee at Andersen Children's Wear revealed that the company underwent a major restructuring at the end of last year, with Chen Songru hiring a new management team and reorganizing its channels. A large order fair was held in April, but after July 22, the company’s website stopped updating. Recently, Chen called an employee, saying he would return soon to resolve the issues.
Chen Songru also recently attended a creative event in Beijing titled "Dancing Dream of Danish Fairy Tales." During the event, he held an investment promotion activity, possibly signaling his intention to revive the "Hans Christian Andersen" brand.
Industry observers describe Chen Songru as passionate and driven, deeply committed to the brand. However, the company’s high expectations and ambitious start may have led to financial strain. Since entering the Chinese market in 2007, Andersen Children's Wear established a design center in Shanghai, built an industrial park in Yueqing, and set up a marketing hub in Wenzhou. Despite these efforts, the company invested heavily without adequate internal management, leading to cash flow problems.
Expenses such as maintaining a team of over ten designers in Shanghai and funding events like the "Little Match Girl" concert tour cost millions. These investments did not yield expected returns, causing financial instability. Internal management issues and shareholder disagreements further hindered growth.
Despite the current challenges, the brand still holds appeal. The company’s hotline receives numerous calls daily, and many potential franchisees are waiting for news. As the future of the brand remains uncertain, all eyes are on Chen Songru, hoping for a revival of the once-thriving name.
Grs Recycled Filling,100% Recycled Filling,Grs Spray-Bonded Filling,Pillow Fiber Filling
USHARE INDUSTRIAL (DONGGUAN)CO.,LTD , http://www.usharedg.com