http://www.philly.com/mld/inquirer/news/front/7248100.htm
Posted on Thu, Nov. 13, 2003
Franklin Mint recasting itself, cutting staff
The collectibles-industry icon is laying off 200 amid a cultural shift that sees dwindling value in figurines.
By Lini S. Kadaba
Inquirer Staff Writer
Move over House of Faberge Imperial game table, the Athene and Pegasus sculpture, and the Princess Grace vinyl portrait doll (just $195).
That titan of tchotchkes, the Franklin Mint, is planning a new focus on its die-cast cars, airplanes and Harley-Davidson collectibles, and dismissing two-thirds of its Franklin Center workforce.
The Delaware County company notified 200 employees yesterday that they would be laid off as part of a business restructuring plan.
"It's the death of the Franklin Mint and the death of every company that's out there saying we're in the collectibles business," said Pam Danziger, president of Unity Marketing in Stevens, Pa., and author of the 2002 book Why People Buy Things They Don't Need. "People don't want it. It's over."
Danziger, who once worked at the Franklin Mint, said American culture, particularly since the Sept. 11, 2001, terrorist attacks, had shifted from cocooning, which was all about buying things to fill emotional voids, to connecting with people and experiences.
"The Franklin Mint didn't see the end of cocooning," she said. "[It] didn't see the maturing of its market. [It] didn't see that young people don't want this stuff."
Its retail stores, including one at King of Prussia, and its popular museum in Franklin Center will remain open, company spokesman Howard Lucker said.
Franklin Mint is the world's largest collectibles company, according to business-information provider Hoover's Inc. Its products are sold through direct mail, catalogs and other advertisements, and in retail locations and specialty stores across the nation.
In the years after it started in 1964, Franklin Mint was primarily a maker of coins. The company grew to boast thousands of products in more than 20 categories, from replicas of Jackie Kennedy's faux pearls and Faberge-inspired teapots to commemorative plates. Many of them were franchise agreements with organizations that included the Coca-Cola Co. and the Vatican.
The overall collectibles market was worth more than $10 billion at its peak in 1998. By 2001, it had fallen to $6.5 billion, according to a 2002 report by Unity Marketing. The report said the sale of figurines, an important market for Franklin Mint, had fallen even more sharply than the industry as a whole.
The Franklin Mint, as a privately held company, does not divulge sales figures.
Work at the Delaware County site involves product design and development, advertising, and sales. No manufacturing is done there.
Yesterday, some employees were sent home with pay by noon. They were expected to return during the next several days for severance meetings. Layoffs will be carried out over the next several months, Lucker said.
"We're going to develop a new, smaller business focused on our core competencies of product development and marketing," Lucker said
Product development will concentrate on die-cast, precision models, he said. Is this the end of Princess Diana memorabilia? No one knew for sure. "There will be other products," Lucker said, but he would not identify them, saying only that decisions were still being made.
In its prime during the 1980s and early 1990s, the business created and produced thousands of products, including figurines, dolls and jewelry.
"We've recognized that attracting new collectors under our prior business model was not working," Lucker said. He said the owners - Lynda and Stewart Resnick, of Los Angeles - had "no choice but to make this hard decision."
Over recent years, the Franklin Mint has had other layoffs.
Besides the 200 Franklin Mint employees notified yesterday, an undisclosed number of freelancers and long-term temp workers were asked to pack up and leave.
Workers, from freelance copywriters to business analysts, carried boxes of personal belongings to their cars. Some cried; others hugged coworkers who would remain behind.
Many were stunned at the announcement.
Barbara Bankert, 53, of Concord Township, has worked at the Franklin Mint since 1968. "Probably no department I haven't worked in," said Bankert, whose latest assignment was as a data analyst.
As she loaded her car with boxes that included floral arrangements she had created for the lobby, she said: "It's been a wonderful 35 years. What I will miss most is the people."
"It's like watching the fall of the Roman Empire," said Leslie Rogalski, 47, of Havertown, a freelance copywriter, as she prepared to drive off. "It's devastating." She has worked there on a freelance basis since 1979.
At the nearby Riddle Ale House just before noon, several workers gathered around the bar, drinking, commiserating and sharing memories.
"It's a shame," said Pat Drucker of Aston, an eight-year Mint employee who works in advertising operations. "I loved my job. I loved my boss... . I've been crying all day."
Coworker Jamie Navin, 25, of Brookhaven, sipped a Malibu daiquiri. "It came as a complete shock," said Navin, a seven-year Mint employee who works in wholesale operations. "I'm still numb."
The Franklin Mint was founded by Joseph Segel, who later started the cable-TV shopping channel QVC, which is based in West Chester. The Resnicks bought the company from Warner Communications in 1985 for $167.5 million.
"The whole notion of collectibles hit its pinnacle... in the mid-1990s," said Steven Denault, an analyst with Craig-Hallum Capital Group L.L.C., in Minneapolis, who follows Department 56 Inc., a publicly traded producer of miniature porcelain or ceramic villages in Eden Prairie, Minn.
For a time, collectors viewed commemorative medals, porcelain birds, celebrity plates, heirloom dolls, leather-bound books, and metal model cars as a surefire investment.
"It became clear that there was not a secondary market for these collectibles," Denault said, and sales tanked.
Posted on Thu, Nov. 13, 2003
Franklin Mint recasting itself, cutting staff
The collectibles-industry icon is laying off 200 amid a cultural shift that sees dwindling value in figurines.
By Lini S. Kadaba
Inquirer Staff Writer
Move over House of Faberge Imperial game table, the Athene and Pegasus sculpture, and the Princess Grace vinyl portrait doll (just $195).
That titan of tchotchkes, the Franklin Mint, is planning a new focus on its die-cast cars, airplanes and Harley-Davidson collectibles, and dismissing two-thirds of its Franklin Center workforce.
The Delaware County company notified 200 employees yesterday that they would be laid off as part of a business restructuring plan.
"It's the death of the Franklin Mint and the death of every company that's out there saying we're in the collectibles business," said Pam Danziger, president of Unity Marketing in Stevens, Pa., and author of the 2002 book Why People Buy Things They Don't Need. "People don't want it. It's over."
Danziger, who once worked at the Franklin Mint, said American culture, particularly since the Sept. 11, 2001, terrorist attacks, had shifted from cocooning, which was all about buying things to fill emotional voids, to connecting with people and experiences.
"The Franklin Mint didn't see the end of cocooning," she said. "[It] didn't see the maturing of its market. [It] didn't see that young people don't want this stuff."
Its retail stores, including one at King of Prussia, and its popular museum in Franklin Center will remain open, company spokesman Howard Lucker said.
Franklin Mint is the world's largest collectibles company, according to business-information provider Hoover's Inc. Its products are sold through direct mail, catalogs and other advertisements, and in retail locations and specialty stores across the nation.
In the years after it started in 1964, Franklin Mint was primarily a maker of coins. The company grew to boast thousands of products in more than 20 categories, from replicas of Jackie Kennedy's faux pearls and Faberge-inspired teapots to commemorative plates. Many of them were franchise agreements with organizations that included the Coca-Cola Co. and the Vatican.
The overall collectibles market was worth more than $10 billion at its peak in 1998. By 2001, it had fallen to $6.5 billion, according to a 2002 report by Unity Marketing. The report said the sale of figurines, an important market for Franklin Mint, had fallen even more sharply than the industry as a whole.
The Franklin Mint, as a privately held company, does not divulge sales figures.
Work at the Delaware County site involves product design and development, advertising, and sales. No manufacturing is done there.
Yesterday, some employees were sent home with pay by noon. They were expected to return during the next several days for severance meetings. Layoffs will be carried out over the next several months, Lucker said.
"We're going to develop a new, smaller business focused on our core competencies of product development and marketing," Lucker said
Product development will concentrate on die-cast, precision models, he said. Is this the end of Princess Diana memorabilia? No one knew for sure. "There will be other products," Lucker said, but he would not identify them, saying only that decisions were still being made.
In its prime during the 1980s and early 1990s, the business created and produced thousands of products, including figurines, dolls and jewelry.
"We've recognized that attracting new collectors under our prior business model was not working," Lucker said. He said the owners - Lynda and Stewart Resnick, of Los Angeles - had "no choice but to make this hard decision."
Over recent years, the Franklin Mint has had other layoffs.
Besides the 200 Franklin Mint employees notified yesterday, an undisclosed number of freelancers and long-term temp workers were asked to pack up and leave.
Workers, from freelance copywriters to business analysts, carried boxes of personal belongings to their cars. Some cried; others hugged coworkers who would remain behind.
Many were stunned at the announcement.
Barbara Bankert, 53, of Concord Township, has worked at the Franklin Mint since 1968. "Probably no department I haven't worked in," said Bankert, whose latest assignment was as a data analyst.
As she loaded her car with boxes that included floral arrangements she had created for the lobby, she said: "It's been a wonderful 35 years. What I will miss most is the people."
"It's like watching the fall of the Roman Empire," said Leslie Rogalski, 47, of Havertown, a freelance copywriter, as she prepared to drive off. "It's devastating." She has worked there on a freelance basis since 1979.
At the nearby Riddle Ale House just before noon, several workers gathered around the bar, drinking, commiserating and sharing memories.
"It's a shame," said Pat Drucker of Aston, an eight-year Mint employee who works in advertising operations. "I loved my job. I loved my boss... . I've been crying all day."
Coworker Jamie Navin, 25, of Brookhaven, sipped a Malibu daiquiri. "It came as a complete shock," said Navin, a seven-year Mint employee who works in wholesale operations. "I'm still numb."
The Franklin Mint was founded by Joseph Segel, who later started the cable-TV shopping channel QVC, which is based in West Chester. The Resnicks bought the company from Warner Communications in 1985 for $167.5 million.
"The whole notion of collectibles hit its pinnacle... in the mid-1990s," said Steven Denault, an analyst with Craig-Hallum Capital Group L.L.C., in Minneapolis, who follows Department 56 Inc., a publicly traded producer of miniature porcelain or ceramic villages in Eden Prairie, Minn.
For a time, collectors viewed commemorative medals, porcelain birds, celebrity plates, heirloom dolls, leather-bound books, and metal model cars as a surefire investment.
"It became clear that there was not a secondary market for these collectibles," Denault said, and sales tanked.
