djcmh
Member 
Posts: 773
What I collect: Worldwide
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Post by djcmh on Dec 22, 2023 14:18:54 GMT
Stanley Gibbons to go into Receivership
"Stanley Gibbons looks set to fall into administration as part of a plan to secure the future of the 167-year-old rare stamp dealer. The firm, which one of the most prominent names in the stamp and coin collecting world, will appoint administrators at PricewaterhouseCooper as soon as today. It comes just over a year after it was delisted in London and is likely to alarm the 66 staff as well as customers and suppliers so close to Christmas. But the Mail understands it will be immediately bought back by its owners Phoenix Asset Management in a ‘pre-pack’ administration. Phoenix, the biggest shareholder, took Stanley Gibbons off the stock market last year. It was set up by chief investment officer Gary Channon and backed by insurance tycoon Sir Peter Wood. Other major investments include model train maker and Airfix owner Hornby. Stanley Gibbons, the world’s longest established rare stamp merchant, said it and its coin dealing business, AH Baldwin & Sons, ‘have each filed a notice of intention to appoint an administrator’. A spokesman for the firm said: ‘We would like to reassure customers and wider stakeholders that we are continuing to operate and are exploring all options to seek a continuation of the business.’ Shares in Stanley Gibbons, whose eponymous founder was born in 1840, the year the Penny Black was issued, were traded on the stock market for 20 years before it was taken private by Phoenix in 2022. It lost £2.9million last year, having made a loss of £2.6million in the previous year. Phoenix was set up by Channon in 1998 and recently linked up with Wood, who was behind Direct Line and Esure, to invest in British brands. In May, it bought funeral directors Dignity." A dark day for the hobby. SGs financial health has been poor for several years but now it truly is in the ICU and the prognosis is very uncertain. Purchasing the 1c Magenta may very well have been the straw that broke the camel's back.
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angore
Member
Posts: 5,358 
What I collect: WW, focus on British Empire
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Post by angore on Dec 22, 2023 14:48:43 GMT
As for the 1c Magenta. when I looked at the details of the sale, the purchaser seemed obscure (layer of investors) but SG could claim some role for PR. It mentions rare stamp and coin business but is Gibbons Monthly, catalogue, and album business (could be spun off) making a profit?
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dorincard
Member
Posts: 1,453
What I collect: My focus is on Wild Mammals on maximum cards. Occasionally, I get or create maximum cards with other animals, or any other topic.
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Post by dorincard on Dec 22, 2023 14:54:15 GMT
It goes away with Dignity, if you get my drift.
SG is looking for a "wide receiver", pun(t) intended.
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djcmh
Member
Posts: 773
What I collect: Worldwide
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Post by djcmh on Dec 22, 2023 15:44:53 GMT
The root cause of the problem is that SG has had absolutely atrocious management over the last several decades, and the decision to take the company public back in the early 2000s only made things worse. Company directors ended up having to serve Venture Capital masters whose only interest was in short term profits for dividends, not the long-term growth of the company. Look at the other three big publishers - Scott, Michel and Yvert. No one seems to think they are on the brink of financial collapse, and to the best of my knowledge none of them are public companies traded on stock exchanges. Lesson I take from this is venture capitalism and hobby companies do not mix - the desire by venture capital for short term profits for dividend growth does not work with a business whose core market and product line do not lend themselves to turning quick profits in the short term.
I think the only real hope for Gibbons is that the publishing part is spun off (do they really need the Strand store in this day of ecommerce??) and taken over by someone who knows the hobby and is willing to invest the time and money to make SG at least as profitable as the other three big catalogue publishers. The question is, will there be a white knight around to come in if the opportunity arises. Given that the market value of SG is probably under US$10 million, there are clearly possible buyers in the hobby around who do have that kind of wealth who could take over the reigns and give SG the time and space to regrow its brand under private ownership.
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djcmh
Member
Posts: 773
What I collect: Worldwide
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Post by djcmh on Dec 22, 2023 15:48:06 GMT
As for the 1c Magenta. when I looked at the details of the sale, the purchaser seemed obscure (layer of investors) but SG could claim some role for PR. It mentions rare stamp and coin business but is Gibbons Monthly, catalogue, and album business (could be spun off) making a profit? over on the forum "down under" they have been posting financial filings that SG as a public company has to publish, and IIRC the last update indicated that all branches of the company were operating at a loss, though the publishing branch loss was marginal (under 100K I believe). The album business has already been spun off a few months ago - it is now owned by Dauwalders of Salisbury who will publish the albums under the Gibbons name. |
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angore
Member
Posts: 5,358
What I collect: WW, focus on British Empire
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Post by angore on Dec 23, 2023 11:30:44 GMT
They spent a good bit of money remodeling the Strand store in part to show off the 1c Magenta from what I have read. I do not think most buyers care about the effort/expense on branding, etc. It is not going to get collectors to buy more.
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youpiao
Member
APS #218885 IPDA #196
Posts: 131
What I collect: Worldwide, mainly classic-era, Topicals: Classical music, Literature/Fiction Writers, Accordions, Novelty stamps.
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Post by youpiao on Dec 28, 2023 19:56:19 GMT
The latest, via email, 27 Dec:
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BermudaSailor
Member
Posts: 75
What I collect: British colonies, primary Bermuda
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Post by BermudaSailor on Jan 2, 2024 19:39:00 GMT
When litigated, the court may well find that the transfer of Stanley Gibbon's assets to the new entity was made to avoid paying their creditors. Which may mean that the court will unwind the transaction and make the assets available to the creditors. I can't imagine that SG's creditors will sit still. We'll see.
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angore
Member
Posts: 5,358
What I collect: WW, focus on British Empire
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Post by angore on Jan 6, 2024 11:32:46 GMT
I received this email today. I subscribe to Gibbons Stamp Monthly (I do not see how they can walk away from all that debt since those that did this were part of the overall group as I understand it). Dear Customers, As a new year starts so does a new chapter for Baldwin's and Stanley Gibbons as both brands are acquired by Strand Collectibles Group. Baldwin's, already a global name in numismatics, will now broaden our horizons to encompass all collectibles auctions, including coins, medals, stamps, trading cards, comic books, video games, sports memorabilia and more in the coming years curated by our in house experts including the Baldwin’s Coins & Stanley Gibbons specialists you will know so well. The schedule for the coming months, led by Iain Murphy, Managing Director of Baldwin's Auctions already boasts some exceptional philatelic, numismatic and pop culture auctions, setting a pace we expect to see increase further still throughout the year. To support new and existing auction categories we have recently unveiled our brand new platform www.baldwins.co, (note: the new domain is .co not .co.uk or .com) designed and built by our team based on your feedback to bring the joy of collecting to the auction experience. Neil Paisley, MD Baldwin's Coins, and the team will continue to buy and sell rare British, ancient and world coins. They will be at the New York International Numismatic Convention next week and the York Stamp & Coin Fair later in the month. Stanley Gibbons will continue to serve the philatelists of today with the products and services which epitomise our expertise and meticulous attention to detail such as Catalogues and Price Lists. This year we publish the 127th Edition of the Commonwealth & British Empire (1840-1970) catalogue, still receiving contributions from Dr Philip Kinns after over 50 years of distinguished service. Victoria Lajer, MD Stanley Gibbons, and her team will also launch a new digital catalogue collecting experience in 2024. Designed to help you throughout your collecting journey, starting with identifying and finding items all the way to keeping track and improving your collections. Features we're confident will endear the product to a new generation of philatelists. I am conscious that we bear huge responsibility as the stewards of these storied organisations. Honouring the past while creating a rich and sustainable legacy is our goal here – not least because that is how we may offer the very best care and attention to detail for collectors acquiring, or parting with, treasured possessions. By harnessing the heritage and the unique expertise from both brands, I’m confident your experience will feel both reassuringly familiar and significantly enhanced. Tom Pickford CEO, Strand Collectibles Group |
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Post by michael on Jan 9, 2024 11:19:23 GMT
A link to a 68 page document from the administrators. Makes interesting reading if you have an hour to spare. find-and-update.company-information.service.gov.uk/company/00348043/filing-historyThey tried to sell SG as a going concern but there were no buyers. The administrators felt that the best option to maximise money available to the creditors was the route they have chosen. It will be interesting to see who the creditors are when they are published. |
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