Flanders-based board game, cards, and collectables company Cartamundi is set to axe its production of board games such as Monopoly and Risk due to financial difficulties, De Tijd reports. A factory operated by the company is set to close, with 230 jobs also being cut.
In 2015, the Turnhout company acquired two factories from US toy giant Hasbro. Since then, Cartamundi has been responsible for producing board game classics such as Monopoly, Cluedo, Risk, and Trivial Pursuit.
As part of the deal, Hasbro focused on the marketing and sale of the board games. In a statement at the time, the company said that the acquisition made them “a world market leader in the production of board games.”
Unfortunately, this did not last. Losses at the company began to pile up as a result of poor sales and rising costs. With the closure of its factory in Waterford, Ireland, 230 people will be made redundant. Its factory in the US state of Massachusetts is still operational, but it too will cut around a quarter of all jobs.
“The situation in Ireland has become worse month after month. It’s a situation we can no longer bear as a company. That is the reason for this sad decision. That’s how it is, I can’t put it any other way. Every company is obliged to adapt to the external environment, and that is what we are doing now,” CEO Stefaan Merckx told De Tijd.
The Irish press has denounced the fact that Cartamundi's owners received nearly €31 million in dividends from Ireland before the closure of the Waterford factory. Irish trade unions are pushing for a strong severance package for sacked employees.
According to the Cartamundi CEO, following a surge in demand for board games during the Covid-19 pandemic, production capacity was increased, both at Cartamundi and other manufacturers. But now demand has dropped again and “there is now structural overcapacity in production.”
Inflation has also massively increased the cost of raw materials and wages, leaving the Belgian company to struggle in the face of competitors, notably in China. Fortunately for the company, its Hasbro-licensed brands are not its lifeblood. The company has an array of brands under its name for several different industries.
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For example, Cartamundi manufactures the famous “Bicycle” playing card brand, as well as tarot cards, casino products, Magic: The Gathering cards, Pokémon cards, Dungeons & Dragons sets, and more. “The business is in good shape,” Merckx assured. “We are investing heavily into it.”
The company is set to invest an additional €80 million to build another four card printing factories over the next few years. One of these plants has recently opened in Mexico and production from Germany will start next month. In 2022, the company conducted €650 million in sales, up 13% from the year prior.
In Turnhout, production capacity is set to be doubled in the next two years and €25 million will be invested into the Belgian economy, creating 100 new jobs. Over the last 10 years, Cartamundi has grown by around 10% annually.
