The future of Amscan International and associated companies including Sheffield-based costume seller Christy’s by Design and Ginger Ray have been secured following a sale of the business and assets to Baaj Capital.
As part of the deal, 133 employees based across the companies’ sites in Sheffield, Milton Keynes, Weybridge and Manchester transferred to the purchaser. But a further 69 employees have been made redundant.
James Clark and Will Wright of Interpath Advisory were appointed joint administrators of Amscan International, Christy’s by Design, Ginger Ray and Party Delights on 15 July 2024.
At the same time, Clark and Howard Smith were appointed joint administrators to Wonder Group Bidco and, on 10 July 2024, Clark and Ryan Grant were appointed joint administrators to Amscan Holdco.
The companies are part of The Wonder Group, an international wholesaler and retailer of costume and party products headquartered in Milton Keynes, and with operations in markets including USA, Germany, Sweden, Malaysia, Australia, and Hong Kong.
The group had experienced a period of underperformance in trading in the wake of a downturn in consumer spending.
This underperformance was compounded by the insolvency of a major customer, Party City, in early 2023.
In response, the directors sought to examine options for the group, including exploring the possibility of a sale or refinancing.
However, when it became clear that a solvent outcome was not possible, the directors decided to seek appointment of administrators.
The joint administrators sold the business and certain assets of the companies to four separate companies owned by the investment firm Baaj Capital.
They will now be providing support to those people who have lost their jobs, including assisting them with making claims to the Redundancy Payments Service.
Interpath advised the group through an international restructuring, culminating in solvent sales of the group’s Malaysian and Swedish subsidiaries, saving a further 635 jobs.
The group’s Australian subsidiary is in receivership but continues to trade and is subject to an ongoing sale process.
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.
“We are pleased to have concluded these transactions which will see the UK trading entities move into the ownership of Baaj Capital.
“Successfully delivering both these transactions in the UK and overseas was incredibly complex and we’d 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.”
A spokesperson for Baaj Capital added: “We are pleased 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.
“The long history of Yorkshire-based Christy’s by Design is now secured to move forward together with the other brands of the group.”
Legal support was provided by Shoosmiths LLP (acting for Baaj Capital) and Addleshaw Goddard LLP acting for the joint administrators.