Partners Group is in active restructuring talks that could see control of German toy manufacturer Schleich transferred to its creditors, according to a Bloomberg report citing sources close to the matter.

Lenders involved in the negotiations include Investec and HIG Capital, who are reportedly proposing a €5m capital injection to cover the company’s near-term liquidity needs. Blackstone is also participating in the discussions in its capacity as a loan manager for other institutional investors.

The potential deal would result in temporary control of Schleich shifting to creditors, with a structured sale process expected to follow in search of a long-term owner. Restructuring advisor Ankura Consulting Group has been engaged to support the process, while Ernst & Young is conducting an independent viability review.

Partners Group acquired Schleich in 2019 from Ardian, financing the deal with a €175m first-lien term loan and a €40m revolving credit facility, both maturing in 2026. At the time, Schleich reportedly generated EBITDA of around €40m.

However, the company, famous for its plastic figurines including Smurfs, animals, and Harry Potter characters, has struggled in recent quarters. Revenues fell 15% in 2023 to €234m, as global toy demand weakened and trade disruptions, particularly tariffs affecting its China-based supply chain, intensified pressures. The US market has been especially challenging.

The outcome of the restructuring remains uncertain, and all involved parties, including Partners Group, Schleich, and the creditors, have declined to comment publicly.

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