Toymaker Manny Stul is Australia’s newest billionaire

FORGET iron ore mines and skyscrapers. For Australia’s newest billionaire, the path to riches had origins of a smaller scale.

Moose Toys have made co-chief executives Manny Stul (right) and stepson Paul Solomon very rich. Picture: Jason Sammon

FORGET iron ore mines and skyscraper developments. For Australia’s newest billionaire, the path to riches had origins of a much smaller scale.

Melbourne toymaker Manny Stul has debuted at number 39 on the BRW Rich 200 List with $1.24 billion in family wealth, thanks to his incredible turnaround of a business that almost forced him into bankruptcy.

The 67-year-old Polish immigrant, who owns and runs Moose Toys in partnership with his wife Jacqui Tobias and stepson Paul Solomon, is the richest of this year’s newcomers.

And it’s all thanks to the family-owned company Moose Toys’ hit new range, Shopkins, which is so popular with kids that it’s reportedly outselling Barbie, Lego and My Little Pony.

The range of collective characters, which have their own YouTube channel, followed the earlier hit, Trash Packs, and the popular craft toy Bindeez.

Trash Packs have been one of Moose Toys’ biggest hits.

Other newcomers to this year’s rich list include Jonathan Munz, whose family recently floated plumbing manufacturer Reliance Worldwide Corporation, at position 50 with a $1.07 billion net worth.

Gina Rinehart has been knocked from the top spot by Meriton apartment developer Harry Triguboff, whose wealth reached a record $10.62 billion this year on the back of the property boom.

After five years as Australia’s richest person, Rinehart’s wealth more than halved to $6.06 billion, with a combination of falling iron ore prices and her legal stoush with daughter Bianca Rinehart relegating her to fourth place in the list.

MOOSE TOYS REBORN

At first glance, it looks like an overnight success story, but Manny Stul has revealed how he kept Moose Toys afloat.

Nine years ago, a disastrous product safety breach brought the company to its knees after one of its most popular toys was found to contain a chemical that, when mixed with water or saliva, turns into the potentially deadly chemical gamma-hydroxy butyrate (GHB).

Three children were admitted to hospital within 10 days after ingesting the plastic balls in craft toy Bindeez.

It turned out the Chinese factory that produced the balls had secretly switched an innocuous chemical to a cheaper, unsafe one.

The fact that Moose Toys survived a nationwide recall, numerous lawsuits and the hit to its corporate image makes its path to success all the more incredible.

“The advice we were given was to just go into voluntary administration,” Stul told Fairfax Media.

“We had all these American insurance companies coming after us, because the payouts were going to be huge.”

Moose Toys has risen like a phoenix from the flames of its 2007 recall disaster. Pictured is Manny Stul’s wife Jaqui Tobias, a director of the company. Picture: Chris Eastman

But he managed to turn things around in a marathon 10-day negotiation with creditors, securing a deal that enabled the company to not only survive, but transcend its early success.

Stul recalled how he took personal responsibility for ensuring there was no repeat of the disaster, accepting full liability for what happened and exposing himself to potential criminal prosecution if another safety breach occurred.

He spoke of the sense of morality instilled in him by his Polish refugee parents, with whom he immigrated to Australia as a baby.

“They both had a very strong work ethic and were very moralistic and clear cut about what’s right and wrong,” he told Fairfax Media.

News.com.au reached out to the Stul family, but was told both father and son were unavailable for comment.

Manny Stul will be represent Australia next month at Ernst & Young’s global Entrepreneur of the Year Awards in Monaco.

BRW RICH LIST 2016 TOP FIVE

1. Harry Triguboff – $10.62 billion (property)

2. Anthony Pratt – $10.36 billion (manufacturing)

3. Frank Lowy – $8.26 billion (property, investment)

4. Gina Rinehart – $6.06 billion (resources)

5. John Gandel – $5.4 billion (property)

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