The following press release was issued in January 2012.

During the course of 2011, the business, like many other UK retailers, suffered from exceptionally poor trading conditions on the high street. Unfortunately the Group was unable to secure continuing banking facilities and the Board were left with no choice but to appoint Zolfo Cooper as Administrators.

The Administrators contacted over 80 potential buyers and received a number of firm offers. Primary Capital, a major shareholder and substantial creditor to the business, also decided to make an offer in support of the management team for certain elements of the business. Primary’s offer was the only one of the competing bids which would have provided continuing employment in the business and committed new funding for development. Primary’s offer was accepted by the Administrators.

Primary and management have acquired the TOBAR wholesale business, the Hawkins Bazaar and Letterbox direct businesses, and an estate of 8 stores (trading under the Hawkins Bazaar and Letterbox fascias). The stores included in the purchase are Bath, Birmingham Bullring, Braintree, Edinburgh, Milton Keynes, Wandsworth, Norwich and York. The Group is also looking to re-open additional stores closed during Administration. The purchase preserves the jobs of about 150 employees.

The Group’s performance in 2011 was entirely due to challenging trading conditions in the run-up to Christmas. There has not been any significant expansion of the business during the last 2 years – in Christmas 2009, the Group had 59 permanent stores and 62 temporary stores compared with 62 permanent stores and 57 temporary stores in Christmas 2011.

Graham Heddle, Primary Capital’s representative on the TOBAR Board comments:
“Primary has always been, and remains, a strong supporter of the Group. We think this is a great business and that the current management team have, and will continue to make, great strides in improving the company.”

Published on: January 1st, 1970