With the firm trying to avoid insolvency, Larian (pictured) whose company is now Zapf's largest shareholder, made an offer to the banks holding the debt. Shares jumped 27 cents, or 5.5 per cent, to €5.22 following the announcement.
Meanwhile, about 50 administrative jobs are to go at MGA-owned Little Tikes' Hudson headquarters in the US.
At the same time, officials from Little Tikes and economic development leaders locally and statewide are trying to work out details to maintain the company's presence in Hudson.
Isaac Larian, chief executive MGA Entertainment, said: “It was a tough and heart-breaking decision. But we had to do it in order to be able to turn the company into profit and based on synergies. No other plans are in place.”
Little Tikes was purchased by MGA last September. Talks are continuing between officials of Little Tikes, Hudson, the Ohio Department of Development, Team NEO and the Greater Akron Chamber to keep Little Tikes' headquarters and production facilities in Hudson.
“We see the production of goods in Hudson for the foreseeable future,'' said Mark Bachner, vice president of operations. However, Bachner also said the company has been frustrated that the state's incentives are only to grow or recruit companies, not keep companies.
“As a global company, we are constantly looking at the best place to produce products. We've seen a huge shift to low-cost countries like China,” Bachner said.