Home news Hornby boss to step down from toy firm

Hornby boss to step down from toy firm

26
0

The chief executive of model toymaker Hornby, Steve Cooke, is to step down amid a strategic review by the firm’s majority shareholder.

Phoenix Asset Management took full control of the business in the summer in an effort to boost growth.

A turnaround plan at the Scalextric-to-Airfix toy firm has seen it reduce product ranges and cut back investment.

Last week, Hornby warned over its full-year performance due to increased competition and weaker demand.

‘New chapter’

The company said Mr Cooke’s departure was “mutually agreed” and he would remain in place for a transitional period.

He joined the company as the finance head in June 2015 and became chief executive in April 2016.

Interim chairman David Adams said: “The position of Phoenix as Hornby’s majority shareholder represents a new chapter in the development of the group, and the board is working closely with Phoenix to set the direction of the business going forward.”

In June Phoenix launched a mandatory bid for Hornby, after offering to buy a stake from another investor that gave it a 55% holding in the firm.

Phoenix said that it intended to develop an understanding of the group and its longer-term strategy.

The offer, of 32.375p a share, valued Hornby at £27.4m. At the time, Hornby said the takeover bid from its largest shareholder “significantly” undervalued the firm.

The company is struggling to revive its fortunes, and is due to release new products in the second half of the year to help increase demand.

In early afternoon Hornby shares were down 6.84% at 27.25p.


Source: BBC