Toy firm collapse costs 160 jobs

A North Yorkshire toy and stationery company has gone into administration, with the loss of 160 jobs.

J A Magson Ltd, based at Clifton Moor, York, had been hit by a slump in demand for toys, administrators said.

The 79-year-old company had already cut its workforce in half earlier this year. Attempts to find a buyer for the ailing firm failed.

J A Magson was established in 1929 as a local wholesaler and grew to a national business in the 1980s.

'Poor weather'

Additional distribution centres were set up in Glasgow, Ipswich, Banbury and Hailsham but these were disposed of earlier this year and distribution was contracted out.

Administrator Neil Bennett, of insolvency specialist Leonard Curtis, said: "The current financial climate, with reduced consumer spending on the high street, combined with poor weather over this last summer badly affecting toy sales, has not helped this business.

"Unfortunately, the timing has not been good, hence our appointment as a protective measure."

A small number of employees have been retained to assist in the administration, he added.

The company had a customer base of independent shops, buying associations and chain stores.

In November 2007 it was acquired from the Magson family by the Agilo Investment Fund.

Turnover for the 10 months to October 2008 was £20.2m.

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