Official mascot of the 2006 World Cup, Goleo the lion, holds the other official mascot, Pille the talking football, in Leipzig, Germany, December 8, 2005. The German manufacturer of World Cup mascot 'Goleo' has declared itself insolvent. REUTERS/Kevin Coombs

Uwe Klimach, head of marketing for stuffed animal maker Nici, a family run company based in the southern city of Altenkunstadt, confirmed that the company had filed for insolvency, but declined to comment further.

According reports in the German media, the company has run into financial problems predominantly due to low sales of its plush mascots. Nici won the sole rights for production of the lion, which was designed by the Jim Henson Company, maker of the Muppets.

(Source: News24.com)