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In the year 1912 Bernhard Hermann founded his family business in Sonneberg which he named after his initials "BE HA" and started to produce teddy bears and dolls. In 1948 he along with his sons moved his business to Hirschaid near Bamberg, todays site of the company. It is here that the actual rise of the company to one of the most renowned in its industry branch began, accompanied by the change of the company name to Teddy-Plüschspielwarenfabrik Gebr. Hermann KG, with the three sons of the founder as general partners.