The head of the fashion brand Marc Cain has no children, so he leaves his company to his employees. A unique event of this magnitude, brave at the same time – but also sensible?
He only invested a few weeks ago: “We ordered five new machines, three are already here. Nice, isn’t it?” Helmut Schlotterer is happy about the new circular knitting machines. And about the fact that Marc Cain is making progress. Even if the company will soon no longer belong to him.
Helmut Schlotterer’s empire in the Swabian province only celebrated its 50th anniversary at the end of August. At the climax of a lavish party in front of invited celebrities, the company boss repeated what he had already announced a few months earlier: he would give away his company – to his employees: “I don’t have any children. So I had to think about what I would do with the company,” said the founder and owner of Marc Cain.
He was repeatedly approached with purchase offers. “But that also means leaving and having a lot of money,” says Schlotterer. And he didn’t want that: neither to leave nor to live a life of luxury. Schlotterer says he sees friends who have sold their companies and what that does to them. That’s not for him.
Pass on the “company genes”.
So the entrepreneur takes an unusual measure and bequeaths his business and private assets to his social “Helmut Schlotterer Foundation”. By establishing a new employee foundation, his voting rights are transferred to his employees: “Marc Cain’s employees are automatically members of the employee foundation, and this as a corporate body inherits the inheritance,” says Schlotterer.
The employee foundation is to be managed by an employee council consisting of all active managers. This means that the employees determine the fate of the company and are therefore directly responsible for its success or failure.
He wanted to ensure that Marc Cain’s “genes,” as Schlotterer says, were preserved. You can get an idea of what exactly that is when you see the boss walking through the production halls. He knows every employee and has a kind word for everyone. “This is the best production manager we’ve ever had,” he says in a hall, shaking the hand of a dark-haired man. He shines.
World fashion from the provinces
For Schlotterer, the company is like a second family: “My wife didn’t want children, and I worked day and night at the beginning,” said the entrepreneur. And so he created a successful textile company in the province.
“Marc Cain” sounds cosmopolitan, but the brand is based in Bodelshausen, Swabia. A small community between Stuttgart and Lake Constance, lots of green meadows, lots of fresh air, lots of half-timbered buildings. In the middle is the “Marc Cain” campus made of concrete and glass, almost 1,000 employees, the largest business tax payer in the community.
Schlotterer’s father built the knitwear factory, his junior took it over and turned it into a global brand. “In my industry, a lot of competitors have disappeared. Strenesse, René Lezard, St. Emile, all gone. New bankruptcies are reported every day,” says Schlotterer. The Corona crisis also hit Marc Cain, but this year Bodelshausen is again expecting revenue of around 300 million euros.
Success model Employee foundation?
Nadine Kammerlander, professor at the Otto Beisheim School of Management, believes the foundation is a good decision: “An employee foundation can be a good thing if there is no successor in the family. This is a motivational boost for the employees to become even more committed to use the company.” Studies have shown that foundation companies in German-speaking countries have slightly higher business success.
However, there would also be a certain risk if employees were given voting rights and entrusted with far-reaching company decisions. “You obviously have to ensure that future decision-makers also have the skills to make the right decisions and not act in their own interests,” says Kammerlander.
Employees become entrepreneurs
And that’s why “Marc Cain” owner Schlotterer is traveling a lot these days. Have conversations, roam around the offices. “These are the technicians who make the knitting programs,” he explains as he passes by. The fact that his employees will soon be involved in the company’s success motivates them – but also presents the current owner with major challenges. “I’m currently in the educational process of turning employees into entrepreneurs. And I’m curious to see how they optimize profits, because without profit there is no payout. It’s very simple.”
The successor structure should be in place by the end of the year. Then Helmut Schlatterer wants to fade into the background. “And then I’ll see what exciting things happen here.”