LONDON (Reuters) - Toy maker Hornby Group is interested in Humbrol, the maker of Airfix plastic tanks, planes and ships which is in administration, a source close to Hornby told Reuters on Friday.
"It is very early days yet and they will want to see what is for sale. But Airfix is an iconic brand and Hornby will want to see if it can be salvaged," the source said, adding Hornby would likely contact Humbrol's administrator to express its interest.
At 10:00 a.m., Hornby shares, which have risen fivefold over the past five years as it revitalised tired products, were unchanged at 227 pence.
On Thursday, British-based Humbrol, owner of the miniature military models, went into administration, saying its problems partly stemmed from a sales slump caused by children spending more time in front of their personal computers and televisions.
The company, which makes kits for assembling miniature war planes, passenger jets, Japanese infantry soldiers and historical figures such as Henry VIII, has fired 31 of its 41 employees, administrator Grant Thornton said.
Its intellectual property and brand names, which include Plasticine, Supercast and Young Scientist, are up for sale, the administrator said.
SCALING UP IN EUROPE
Separately, Hornby said on Friday it was buying Heico Modell, a privately owned German distributor of model train accessories, to expand into Europe's biggest market.
Hornby, best known for model railways and Scalextric racing cars, said it was paying a nominal sum for Heico but would take on net liabilities of 200,000 euros (135,000 pounds).
"Our strategy to establish a global model railway and slot racing business is well advanced and this is a vital move that will enable us to grow," Chief Executive Frank Martin said.
Heico has 1,200 active customer accounts with independent retailers throughout Germany. Its products include track-side buildings and a range of accessories for model railway wagons.
Hornby said the model railway market in Germany was estimated to be six times larger than in Britain.
Despite facing fierce competition from computer games makers for 20 years, Hornby thinks there is still a strong following for its products, saying recently the majority of its customers were middle-aged men.
"It is very early days yet and they will want to see what is for sale. But Airfix is an iconic brand and Hornby will want to see if it can be salvaged," the source said, adding Hornby would likely contact Humbrol's administrator to express its interest.
At 10:00 a.m., Hornby shares, which have risen fivefold over the past five years as it revitalised tired products, were unchanged at 227 pence.
On Thursday, British-based Humbrol, owner of the miniature military models, went into administration, saying its problems partly stemmed from a sales slump caused by children spending more time in front of their personal computers and televisions.
The company, which makes kits for assembling miniature war planes, passenger jets, Japanese infantry soldiers and historical figures such as Henry VIII, has fired 31 of its 41 employees, administrator Grant Thornton said.
Its intellectual property and brand names, which include Plasticine, Supercast and Young Scientist, are up for sale, the administrator said.
SCALING UP IN EUROPE
Separately, Hornby said on Friday it was buying Heico Modell, a privately owned German distributor of model train accessories, to expand into Europe's biggest market.
Hornby, best known for model railways and Scalextric racing cars, said it was paying a nominal sum for Heico but would take on net liabilities of 200,000 euros (135,000 pounds).
"Our strategy to establish a global model railway and slot racing business is well advanced and this is a vital move that will enable us to grow," Chief Executive Frank Martin said.
Heico has 1,200 active customer accounts with independent retailers throughout Germany. Its products include track-side buildings and a range of accessories for model railway wagons.
Hornby said the model railway market in Germany was estimated to be six times larger than in Britain.
Despite facing fierce competition from computer games makers for 20 years, Hornby thinks there is still a strong following for its products, saying recently the majority of its customers were middle-aged men.
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