UK and European toy wholesaler and distributor, P&C Distribution, has entered administration to safeguard the business against its creditors.
Headquartered in Blackburn, the company trades as The In Thing.
In spite of a period of “dynamic sales growth” with a 40% rise in turnover in 2012 and 2013, the company’s recent trading performance, influenced by several failed product launches which contributed to trading losses, led to cash flow pressures in late 2013 and early 2014.
A statement from administrators said it was “necessary to seek the protection of an administration to safeguard the business, its assets and preserve jobs”, given “the extent of creditor pressure”.
Ben Woolrych and David Thornhill of FRP Advisory, appointed joint administrators on 6 February, will continue to trade as normal while marketing the business for sale as a going concern.
The company employs 26 staff, and distributes toys to many of the UK’s major toy retailers including WH Smiths, Sports Direct and Tesco, department stores such as John Lewis, Fenwicks, Selfridges and Harrods. and over 5,000 independent retailers.
Woolrych, joint administrator, said: “We are focusing on working with the employees, customers and suppliers whilst we conduct a thorough sales process with a view to securing the long term future for this dynamic toy distributor and wholesaler.
“Throughout 2012 and 2013, the company had bucked the retail sector trends by rapidly establishing a thriving, profitable toy wholesale distribution business focusing in particular on the fast-growing collectables and “craze” market for toys and branded products.
“Whilst the underlying business model appears viable, recent cash-flow has been insufficient to deal with the set-backs from certain product launches and the protection of an administration order was considered appropriate.
“We anticipate that the administration process will provide the necessary time to undertake any necessary restructuring to maximise the prospects of selling the business asa going concern for the benefit of its loyal staff and customer base.”