Nearly 200 people have lost their jobs after an 80-year-old toy and stationery distributor collapsed into administration.


J A Magson appointed the insolvency firm Leonard Curtis as administrator, becoming the latest victim of the consumer recession. While Magson's customers include Co-op, Sainsbury's and Somerfield, it did not supply Woolworths, the retailer, which fell into administration last week. A large number of retailers and suppliers have hit the buffers this year, as sales orders have dried up during the recession.

Magson, based in York, made 170 staff redundant on Tuesday, but 30 employees will remain working in its head office to help the administrators. A Leonard Curtis spokeswoman said it had to make the sales staff redundant by conference call because they were scattered all over the country. Neil Bennett, a joint administrator at Leonard Curtis, said: "The current management team has done a remarkable job in turning round a business that was ailing two years ago and injecting modern business controls and good governance. Sadly, however, retail conditions just don't favour this scale of operation, so we are hopeful a major retail group will be willing to make the required investment to further transform and consolidate all the improvements already made."

A Magson spokesperson said: "Despite the trading downturn, there are still some very positive aspects to our business and our customer base and supply chain not least our pricing and delivery track record and it may be that a larger retail concern would find us very attractive. As yet, however, we have not secured any interest."

Pinnacle, one of the UK's largest independent distributers of CDs, DVDs and games, also called in the administrators yesterday. The company, a rival of Woolworth's EUK unit, supplies retailers such as HMV, Amazon and WH Smith. BDO Stoy Haward have been appointed.



See Original Article

Call now for help with corporate debts.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk