Party Supplies Retailer Wonder Group Faces Administration Amid Consumer Spending Slump
A major party supplies retailer and distributor, formerly known as Amscan, is on the verge of administration following a decline in consumer spending. According to sources, Wonder Group is preparing to file a notice of intention to appoint Interpath Advisory to manage the insolvency process.
The company has reportedly been hit hard by a decrease in demand for party and costume products in international markets. With a workforce of approximately 200 employees in the UK, Wonder Group may be forced to sell off assets in the coming weeks.
Wonder Group had set a revenue target of £500 million by 2026, after acquiring Party King, an online retailer based in Sweden, just eighteen months ago. The company also has a UK base in Milton Keynes and employs around 200 people in Europe. In 2021, it acquired Ginger Ray, another player in the party supplies sector.
According to business reports, fuel prices have remained high as the UK has been preoccupied with the recent election. In addition, UK house prices have reached record highs, but the market is described as “steady.” Meanwhile, a campaigner for the Post Office was recently given a knighthood.
To buy some time from creditors, Wonder’s management team has chosen to file a notice of intention to appoint administrators. Endless, the investment firm that supported the buyout of Wonder from US-based Party City in 2021, declined to comment on the process or the potential impact on jobs.
In related news, another major player in the UK party supplies industry, Smiffys, is also facing collapse. Last month, the company lined up PricewaterhouseCoopers as administrator. The current challenges facing the party supplies market suggest a tough road ahead for both Wonder Group and Smiffys.
