Upstarts upbeat despite problems

Upstarts has gone into administration, but remains hopeful of either trading out of its troubles or finding a buyer soon.
Publish date:
Social count:

The administrators were called in this week when it became apparent that on-going cashflow problems due to unsold stock of DVD games last Christmas were not going to be resolved and recent efforts to sell the business had failed.

Joint administrator Andrew McTear of McTear Williams & Wood in Ipswich said: “Financial problems had occurred as a result of poor Christmas trading when the company was adversely affected by the national downturn in sales of DVD games.

“In 2005, the company benefited from being one of the first players in the DVD games market but in 2006 the market was saturated and the company failed to meet its sales forecasts.”

He added that in 2005 there were only around 25 DVD games in the market but this had grown to close to 250 games the following year.

“Upstarts had a good year in 2005 as they had great products in a good market,” he said.

“They were expecting 2006 to be bigger still as the market moved towards the DVD games format, but what happened was that everyone jumped on the bandwagon and there was a lot of competition and consumers were confused as to which products were good and bad.

“They were left with huge quantities of unsold, slow-moving stock which hit their cashflow.”

Upstarts will continue to trade whilst a buyer is sought for the business and assets as a going concern. However, given the seasonal nature of the games market, with sales predominantly carried out between August and November ahead of Christmas trading, McTear said a sale would need to be agreed within a month as orders for products to manufacturers in the Far East involved long lead-in times.

“We need to get a deal done so that the purchaser has the time to get listings with distributors and place the orders.”

He added that the firm's directors had been in talks with several interested parties over the past few months regarding a sale, and two have already approached the administrators.



LEGO upbeat despite losses

LEGO believes it has turned the corner despite net losses doubling to 1.9 billion Danish Kroner (£170m) after special items and the firm has finally decided to sell its theme park business.


No rescue for Gadget Shop

Hopes of a rescue package for the Gadget Shop chain, which has been operating in administration, have been dashed after two prospective buyers pulled out and the firm will now close.

Featured Jobs

Vivid Job Logo 620 x 349

Digital Marketing Executive - Toys & Games

Vivid is Britain’s biggest toy company and the 20 largest in the world. With offices across the globe, they sell an amazing portfolio of toys and games to over 60 countries. Vivid is best known for its association with blockbuster brands and is very excited about future opportunities around the world.


UK Sales Agents

Liberty House Toys have been appointed as the exclusive UK distributor for the BiOBUDDi brand, and we are pleased to introduce this new unique, innovative and exciting range of 100% environmentally-friendly toy building blocks. We are seeking experienced sales agents with existing network in the toy retail market.

Gameplan Job Logo 620 x 349

Head of Product Development & Marketing

Our client is a privately owned French toy and games manufacturer which sells through distributors in forty countries. The company develops and sells innovative electronic interactive toys and games for the educational and gaming markets, and also takes suitable licenses. To progress its successful business development a Head of Product Development & Marketing is to to recruited.

HIT Entertainment Job Logo 620 x 349

Licensing Systems Administrator

The Contract System Coordinator is a newly created role to support the deal term entry process into Mattel’s new Contract Management System for its Licensing business. The role will support the Business Teams at the Deal & Amendment phase of the contracting process and act in conjunction with the System Administration team.