Stationery and toy distributor JA Magson Limited in administration
2/12/2008
Long established stationery and toy distributor, JA Magson Limited, of York, has been placed in administration. Neil Bennett and Michael Healy of Leonard Curtis were appointed administrators to the business on Tuesday 2 December 2008.
First established in 1925, as a local wholesaler of toys, stationery and greetings cards, the business was incorporated in 1959 and, throughout the late 1980s grew from a regional to a national business, with additional distribution centres in Glasgow, Ipswich, Banbury and Hailsham and a customer base of leading independent shops, buying associations and larger multiples. In late 2007 the business was acquired from the Magson family and the purchasers have made major efforts to modernise the business. Turnover for the 10 months to October 2008 was £20.2 million.
"The current financial climate, with reduced consumer spending on the high street, combined with poor weather over this last summer badly affecting toy sales, has not helped this business," comments Neil Bennett. "The business has spent heavily, streamlining systems and reducing the staff levels by almost half. Unfortunately the timing has not been good - hence our appointment as a protective measure. We have had to make the majority of the employees redundant; we have retained a small number to assist in the administration. "
Magson Limited headquarters, showroom and a 150,000 sq ft state of the art warehouse are in the Clifton Moor area of York where the 200 staff are based. The additional warehouses elsewhere have been disposed of and distribution was contracted out.
"This is a company that had recently undergone a substantial transformation but was still, owing to the current credit crunch, unable to find a purchaser" concludes Mr Bennett.
