Balloon business sold to investment firm Baaj Capital
The future of Amscan International and associated companies, including Ginger Ray and Christy’s By Design, has been secured following the sale of the business and assets to Baaj Capital.
The deal was announced on Tuesday, 16 July, following the appointment of James Clark and Will Wright, of Interpath Advisory, as joint administrators of Amscan International Limited, Christy’s By Design Limited, Ginger Ray Limited and Party Delights Limited on the previous day, Monday, 15 July.
At the same time, James Clark and Howard Smith were appointed joint administrators to Wonder Group Bidco Limited and, on 10 July, James Clark and Ryan Grant were appointed joint administrators to Amscan Holdco Limited.
James, md at Interpath Advisory, commented: “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. In particular, we would like to thank the group’s employees for their patience and understanding throughout the restructuring process and we wish them the very best for the future.”
The companies are part of The Wonder Group, the international wholesaler and retailer of costume, balloon and party products headquartered in Milton Keynes and with operations in markets including the US, 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 which was compounded by the insolvency of 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 took the difficult decision to seek the appointment of administrators.
Following their appointment, the joint administrators sold the business and certain assets of the companies to four separate companies owned by the investment firm Baaj Capital.
As part of the transaction, a total of 133 employees based across the company’s UK sites in Milton Keynes, Weybridge, Manchester and Sheffield transferred to the purchaser, while a further 69 employees have been made redundant. As a matter of priority, the joint administrators will be providing support to those impacted, including assisting them with the making of claims to the Redundancy Payments Service.
Interpath advised the group through a highly complex international restructuring, coordinating activities across multiple jurisdictions and managing an intricate network of stakeholders 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 which the administrators hope will result in a going concern solution for the future of that business.
A spokesperson for Baaj Capital said: “We are delighted 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.”
