A popular North fancy dress retailer which has traded for more than 130 years has been saved after being snapped up out of administration by an American group.
R.H. Smith & Sons (Wigmakers) Ltd 鈥 which trades as Smiffy鈥檚 at stores in Newcastle, Liverpool, Oxford and Leeds 鈥 took a big hit during the pandemic when lockdowns led to a huge drop in demand for costume and party products. The firm started operating in 1894 and grew to become a leading fancy dress, halloween and carnival manufacturing company, distributing thousands of products to over 2,000 stockists around the world..
Smiffy鈥檚 acquired the Newcastle store two years ago, when the owners of the Magic Box shop announced they were selling up after running the operation for more than 30 years. R.H. Smith & Sons (Wigmakers) had seen its turnover rise in most recent accounts for 2023, from 拢39.6m to 拢54.7m, as its directors said the 鈥渘egative sentiment鈥 of the pandemic had diminished.
Read more: 拢120m Beal Homes development in Hull set for go ahead
Go here for more Humber and Yorkshire business news
However, the business, which has its head office in Leeds, was still feeling the after effects of the Covid 19 pandemic, and as a result its operating profit of 拢274,285 in 2022 tumbled to a loss of 拢3m. Directors told in the accounts how they had hoped Smiffy鈥檚 would return to profitability this year, but the firm called in administrators at PwC after falling into financial difficulties.
The firm鈥檚 accounts highlight how, post-year end, trading was strong, but that Smiffy鈥檚 was in breach of financial covenants of its existing financial facilities with funding firm Breal Zeta, noting: 鈥淲hilst the directors are confident in securing adequate finance facilities beyond 31 March 2024, until the facilities have been secured there is significant uncertainty over the future financing of the company.鈥
Jane Steer and Sarah O鈥橳oole of PwC have now been appointed as joint administrators of R.H. Smith & Sons (Wigmakers) and, on appointment, they completed a sale of the business and assets of the company to Ad Populum LLC.
Califiornia based Ad Populum is formed by a group of companies specialising in gifting and home decor, and it owns several major brands such as NECA which specialises in pop culture action figures and collectibles, Wizkids, a global producer of miniatures and tabletop games worldwide, Kidrobot which creates limited-edition art toys and lifestyle accessories, and US costumes company Rubies II, LLC.
Jane Steer, joint administrator and partner at PwC, said: 鈥淪miffy鈥檚 is a popular brand that has been operating in one form or another since 1894, but sadly, like many other retailers, it was impacted by the after effects of the pandemic. The buyer, Ad Populum, will add Smiffy鈥檚 to its comprehensive range of brands which includes extensive experience of the fancy dress and toy markets.鈥
