A turnaround plan and an £8m fundraising has been announced at lossmaking toy maker Hornby (HRN) in a bid to get the company back on track.
The group, which makes model trains and also owns brands including Scalextric and Corgi, said it had approached investors to raise additional equity and, if this is completed, it will have access to an agreed three-and-a-half-year £10m facility with Barclays.
Chief executive Steve Cooke, who joined in February, said he wanted to reduce the scale of the business, cut costs and streamline its European operating model, among other things. He said a thorough review had identified "many core parts of the group [that] are stable, profitable and cash generative, driven by iconic brands with strong market positions". Areas that need "fundamental change" were also identified.
