Partner Article

Poor Olympic merch sales hit Hornby

British toymakers Hornby have said they do not expect to make a profit this year, due to poor sales of Olympic merchandise and supply chain disruption.

The iconic Margate-headquartered brand said retailers had purchase substantial quantities of London 2012 merchandise from other licensees, and faced with lower sales, the major retailers lost confidence in the merchandise, failing to make repeat orders.

One of the firm’s key suppliers in China has shrunk its manufacturing facilities and Hornby said this had substantially disrupted supply.

In a trading statement, Hornby described the disruption as part of a “painful process” and said it was working to create a more balanced supply base for the future.

It is estimated the firm will approximately break-even for the financial year ending March 31, 2013.

This was posted in Bdaily's Members' News section by Tom Keighley .