When the Aarhus startup left The Lion’s Den empty-handed, they fought on. But now they’ve gone bankrupt

Tonight, another set of aspiring entrepreneurs enter The Lion’s Den as another season of the popular TV show kicks off.

Back in 2023, the entrepreneurial company LalaToys faced the sharp investors in The Lion’s Den. The entrepreneurs of LalaToys wanted DKK 550,000 for five percent of their company. But none of the lions chose to invest.

“You haven’t thought it through properly.”

That was the blunt message from entrepreneur and investor Jesper Buch at the time. And maybe he was right.

The Aarhus-based company LalaToys has now filed for bankruptcy. Nicolai Varney, co-founder of LalaToys, told Aarhus Stiftstidende.

Founded in 2021, the startup offered subscription-based toy rental as an alternative to buying new toys. The concept seemed attractive, especially for parents who often find that toys quickly gather dust in drawers. After the rejection in Løvens Hule, the company continued its operations, including an additional investment from Bjergegaard & Co. who were already on board as investors after a promising start with explosive growth in the first year.

Changed direction in vain

In 2024, LalaToys changed its name to Woodstein following the acquisition of another toy company. Woodstein, which sold building sets for children, was originally part of Story House Egmont, but was sold off after several years of losses.

“If there are no customers for circular concepts, it’s hard to make them succeed. And LalaToys fell victim to that. We have tried to think sustainability into the concept, but on the other hand, we also find ourselves in a buying culture that is not circular,” Nicolai Varney told RetailNews in 2024 about the decision to acquire Woodstein.

He added:

“2023 was a tough economic year for many, and I think that sustainability has gone from being a big issue to a much smaller one, especially for families with children who are already on a tight budget. It was therefore a natural step for us to change direction and create an innovative product that creates more value for families with children here and now.”

The merger meant that both companies were united under one CVR number. Therefore, both the original LalaToys and Woodstein have now been declared bankrupt. Co-founder Nicolai Varney tells Aarhus Stiftstidende that it is the company’s owners who have decided to stop operations.

Indlægget When the Aarhus startup left The Lion’s Den empty-handed, they fought on. But now they’ve gone bankrupt blev først udgivet på TechSavvy.