Spielwarenmesse: Update: Re:Creation files for administration

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Update: Re:Creation files for administration

06. December 2019 15:20 h

By toyworldmag.co.uk

  • Toy World speaks to owner Mike Lehrter.

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.

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