News
Magson rethinks buying group plans
Ronnie Dungan Apr 22 2008, 11:59am
Comments (2)
With most members having already defected to Toymaster, the prospect of a Magson-owned buying group now looks less likely.
While the Toyzone business is continuing to trade robustly, with a sale in-store currently underway, Magson now seems less certain about plans to revive the buying group part of the Youngsters business, as many members have already jumped ship.
Indeed, doubts still remain as whether Toyzone is part of its long term plans.
J A Magson Finance Director Neil Mason said: “We are still reviewing where we take the overall Youngsters’ Toyzone business.
“Since Agilo financed the takeover of Youngsters’ Toyzone, and we inherited the business, we have discovered a very mixed picture: on the one hand, encouragingly, many independent retailers, manufacturers and suppliers have been extremely supportive and positive.
“However, it’s also emerged that, before the receivership went ahead, most Youngsters members had actually joined Toymaster, or other buying groups, so were actually already allied to another trader when Agilo bought the group on 4th April.
In addition, a few suppliers, normally reluctant to deal with independent retailers, are openly dealing direct.
“Naturally, as this information has come to light, some opportunities we had envisaged around setting up a potential buying group are looking much less likely.
“On the bright side, however, we continue to trade very robustly in the Toyzone stores and to re-stock them to a point where we can command much better returns and operate a Sale this month (April). J A Magson continues to grow and perform well and is also contacting all members to offer them support and a safety net option on their outstanding summer stock, should they need it.”
Comments
“Get the facts right !!!”
Posted by: ANON - Apr 22, 1:00pm
To say that most members had already joined another buying group prior to receivers called in is simply untrue. As far as I know nearly all the members waited for the Members Meeting to be presented with proposals.
As the members would have had to resign from Youngsters before joining a different group that information would have been on the table. Magson gave members no assurances that they had firm proposals to offer.
As for direct accounts again this was common knowledge as Youngsters had told suppliers to help members by opening direct accounts.
Are Magson now trying to say they have been stitched up by the receivers ?
However there is a chance for Magson to get something out of this, the Youngsters warehouse operation with collations, items like plastic sandpits, etc etc they have or have a great deal of experience at Wallingford in servicing the Indies needs.
If Magson want to make this work or at least recover something from the investment ! then they need to sort the problems they have on the road, listen to people who know what the Youngsters Members,Toymaster Members and indies use to buy from Youngsters and grab the opportunity that is there for them. !!
“Re: Get the facts right !!!”
Posted by: mark - Apr 22, 7:24pm
Some of the points here are right. Most members have not jumped to Toymaster so this is rubbish. Other rubbish is the stuff held in Youngsters warehouse.
The quality of this rubbish was so great that they regularly resorted to offering a free lorry load of this rubbish at their open days if you bought some decent stock from the proper suppliers on offer. I am sure that by now Magsons will have worked out the the warehouse is full of rubbish which they now have to recycle.....
The fact is that ther is space for two main buying groups to operate. Toymaster is not all it is cracked up to be and if Magsons can get their act together and work out what they want to do with what they have bought their is scope for a decent alternative to Toymaster (this alternative was never going to be Youngsters buying the rubbish they did and failing to communicate with or support the newer shops).
It is time Magsons decided if they want to make a go of it and work out what they have to offer. If it is good, I am sure they will gain members from Toymaster and more new members that are not in any buying group yet.