Schoenau & Hoffmeister were founded in 1901 by Arthur Schoenau and Carl Hoffmeister. The partnership disolved in 1907 due to disputes between Arthur Schoenau and Carl Hoffmeister. The major dispute was that Arthur Schoenau wanted to produce socket-head dolls while Carl Hoffmeister wanted to produce bisque shoulder head dolls.

Carl Hoffmeister left the firm, leaving Arthur Schoenau as the sole owner until 1909 when a new partner, Magnus Leube, joined the firm.

Arthur Schoenau died in 1911 and the company went to his son,l Hans Schoenau. One of the most famous dolls from the company was the Princess Elizabeth doll, modelled from a photograph given to Casar Schneider from Curt Schoenau.