A publisher and distributer of greetings cards with clients including major art galleries has entered administration.
Nigel Morrison and James Stares of Grant Thornton UK LLP were appointed as joint administrators to Museums & Galleries Marketing Limited on 2 July 2013.
Morrison, a partner at Grant Thornton, said the company had experienced difficult trading conditions and was affected by the failure of major customer Clintons Cards last year, culminating in a major dip in sales during 2013.
He explained: “The company implemented a turnaround plan which involved a series of cost reduction measures but which was also dependent on a recovery in sales. Further funding was provided by the company’s shareholders.
“The market did not operate in the company’s favour and sales di not recover as expected, which was partly due to reductions in order levels from certain charities which were dealing with the effect in this own income.
“Sales then declined significantly in May 2013, leading to unsustainable cash flow pressures.”
Based in Frome, Museums & Galleries Marketing designed, published and distributed cards as well as giftware and stationary for museums, galleries and high street outlets. It counted the Louvre, the Uffizi, London’s National Gallery and the National Gallery of Art in Washington among its customers.
The company, established in 1991, employed 28 people prior to entering administration, five of whom have been retained while the remainder have been made redundant.
Administrators have stated talks were taking place with several parties over the possible sale of the company’s business and assets.