Magson acquired the chain as part of its purchase of Youngsters. Most in the trade remained unconvinced that it was truly interested in resurrecting the buying group or rejuvenating the stores and more in the stock within it.
A statement from the firm said: “It is with very great regret that we are announcing the closure of our 20 Toyzone stores at various stages this summer. Despite our best efforts, the economic realities have led to this decision.
“Magson’s originally intended, when acquiring Youngsters/Toyzone, to have a buying group to enhance our customer base and buying power and also to explore the possibility of a successful retail chain. Sadly, the reality is that this is no longer possible, as a significant number of the members had departed, just as we acquired the business, and this left the retail chain in isolation. We found that continuing to run the buying group was not viable.
“There have been three other factors that blighted our chances of success: the lack of viability of many of the Toyzone retail stores due to their sales figures and their locations or rents; problems with supply from some of the major manufacturers who chose to deal with other buying groups and retailers direct; and a poor overall return on our recent Sale period.
“We will make the closure process as fair and smooth as possible, for all employees, and honour a full redundancy package for everyone concerned.
“Magson’s itself continues to trade successful and we remain in the process of seeking to acquire other wholesalers as part of our growth strategy.”