MORE THAN 100 jobs and the future of party products company Amscan International have been secured with the sale of the business to private debt and equity capital specialist Baaj Capital.
Amscan International, whose UK headquarters are in Milton Keynes, and its associated companies had called in administrators last year after a downturn in consumer spending and the insolvency of a major customer affected the company’s performance.
The companies, which also include Christy’s by Design, Ginger Ray and Party Delights, are part of the international wholesaler and retailer of costume and party products The Wonder Group.
A total 133 employees at the company’s sites in Milton Keynes, Manchester, Sheffield and Weybridge have transferred to Baaj Capital. However, 69 staff have been made redundant.
James Clark, managing director at Interpath Advisory and joint administrator, said: “With roots dating back to 1773, the Wonder Group has grown over the years to become a truly international business with operations spanning all four corners of the globe. However, in common with many consumer-facing businesses, it has been hit recently by the dual impact of fragile consumer confidence and rising costs.”
Interpath Advisory were appointed joint administrators of Amscan International Ltd, Christy’s by Design Ltd, Ginger Ray Ltd and Party Delights Ltd, of Wonder Group Bidco Ltd and of Amscan Holdco Ltd last month.
The group had experienced a period of underperformance in trading in the wake of a downturn in consumer spending and the insolvency of major customer Party City early last year. Amscan International’s directors assessed the possibility of a sale or refinancing but appointed administrators when it became clear that a solvent outcome was not possible.
Interpath advised on a highly complex international restructuring, culminating in solvent sales of the group’s Malaysian and Swedish subsidiaries, saving a further 635 jobs. The Australian subsidiary is in receivership but continues to trade and is subject to an ongoing sale process which the administrators hope results in a going concern solution for that business’s future.
“We are pleased to have concluded these transactions which will see the UK trading entities move into the ownership of Baaj Capital,” said James. “Successfully delivering both these transactions in the UK and overseas was incredibly complex and we would like to thank all those who have worked tirelessly over recent weeks in challenging circumstances to save a large part of the group’s businesses in going concern transactions.
“In particular, we would like to thank the group’s employees for their patience and understanding throughout the restructuring process and we wish them the very best for the future.”
A spokesperson for Baaj Capital added: “We are delighted to conclude the purchase of the business of these companies in The Wonder Group, saving the jobs of 133 employees in the process. We now look forward to rebuilding the business with a strong management team and new investment.”
Legal support was provided by Shoosmiths LLP, acting for Baaj Capital, and Addleshaw Goddard LLP acting for the joint administrators.
