Toy firm Grossman sold after buy-in by managers

FAMILY-OWNED toy firm H Grossman has been sold for an undisclosed sum in a management buy-in.

Mark Walls and Daniel McLoughlin, both formerly of toy manufacturer HTI, have taken a majority stake in the Scottish company and its Hong Kong-based sister operation.

The Rutherglen business, founded in 1946 and which employs around 40, was owned by husband and wife Martin and Elinor Grossman. Mr Grossman is the son of the founders but said his own children have no interest in coming into the business.

The 59-year-old said: “I’m not getting any younger and I had a decision to make. Do I look at closing the business – which I would never want to do as it is 70 years old – or do I sell it on to somebody I feel comfortable with and it will go to be 100 years old? I chose the latter.”

Mr Walls, who becomes managing director, said he was extremely proud to be given the opportunity to buy H Grossman and believes there is “great scope” to expand.

Mr Grossman intends to spend more time with his family but will remain with the business and still have a shareholding.

He said he had put conditions on the deal that any new owner was committed to staying in Scotland and all existing staff should be retained.

H Grossman had turnover of £8 million and pre-tax profit of £97,000 according to its most recent annual accounts, which cover 2013.

The firm started out supplying shoelaces, stockings and shoe polish to shops. It now holds licences for brands such as How to Train Your Dragon and Despicable Me.