Toy World was the first trade publication to speak to owner Mike Lehrter, having broken the story last week.
Re:Creation owner Mike Lehrter has confirmed that the company has been placed in administration. Citing what he described as “unprecedented trading conditions,” Mike offered some insight into the deteriorating financial situation which ultimately proved impossible to weather: “We started the year positively, with high hopes. However, a number of our principals shipped spring summer orders late, which didn’t help, while our biggest challenge came from the very different approach taken by Argos this year. We were well stocked up for summer, but sales didn’t materialise in the way we had hoped.”
The challenging market conditions led to KPMG being appointed several months ago to work with Re:Creation in an attempt to sell the business as a going concern. Two companies registered significant interest, but ultimately neither deal came to fruition. At this stage, with sales showing no signs of picking up as anticipated in November, the bank declined further financial support, leaving the company with no option but to file for administration.
Mike commented: “In recent years, conditions have been getting increasingly tougher for small and medium distributors. There is a lot you have to get right and little room for error, given the tight margins which distributors work on.”
Re:Creation is currently working closely with KPMG to clear remaining inventory and tie up all the loose ends. Any parties interested in finding out more about stock availability and pricing should contact finance director Naomi Fowler on 07876 204979.
One particular opportunity of note is the chance to help facilitate an outstanding FOB order for a range of outdoor products with Tesco, which is of a significant size. Anyone who has an FOB account open with Tesco can talk to Naomi to find out more details.