A POPULAR fancy dress brand has been saved from insolvency after collapsing into administration.
Smiffy's, a family-owned fancy dress business has been bought within hours of appointing administrators at PwC.
The whole business, including its physical stores, has now been sold to Ad Populum LLC.
The 130-year-old retailer, which sells party costumes, wigs and decor, was founded in 1894 and is said to ship more than 26million items each year.
It also distributes 7,500 products to thousands of stockists around the world.
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The brand operates an online store and trades from five physical stores across the country.
Its stores in Liverpool, Newcastle, Headingley, Leeds, and Oxford remain open as normal.
Jane Steer, joint administrator and partner, PwC, said: "Smiffy's' is a popular brand that has been operating in one form or another since 1894.
"But sadly, like many other retailers, it was impacted by the after-effects of the pandemic.
"The buyer, Ad Populum, will add Smiffy's to its comprehensive range of brands which includes extensive experience of the fancy dress and toy markets."
Ad Populum owns several brands, such as NECA, a global distributor of pop culture action figures and collectables.
It also owns game developer and published Wizkids, Kidrobot, a creator of limited-edition art toys and lifestyle accessories, and Rubies II a US costumes company.
The news comes just weeks after Sky News reported that Smiffy's was on the brink of insolvency.
The company filed a notice of intention to appoint administrators on Thursday, May 30.
At the time, a spokesperson for the retailer said: "Following four extremely challenging years as a result of the pandemic, the subsequent supply chain crisis, and the ongoing inflationary burden on both businesses and consumers, Smiffy's was required to take the difficult decision yesterday to file a notice of intention to appoint administrators."
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When a firm goes into administration, potential buyers have the option of buying all or part of the business.
For example, a buyer may only opt to buy the brand's name and trademarks without making an offer for the physical stores.
Luckily for Smiffy's, all of the business has been snapped up and it's understood that the chain's physical stores will continue to trade as normal under new ownership.
However, rescue deals haven't always been that straight forward.
When Paperchase collapsed into administration last year, all 106 shops closed.
But the name lives on as Tesco snapped up the brand, and its range of stationary, cards and gifts can now be bought online and at some selected Tesco stores.
When Wilko collapsed into administration last August, all stores closed.
The Range bought up the brand name and intellectual property and started selling Wilko-branded products in stores.
It then launched a Wilko website and, in a shock move, started opening new Wilko stores on the high street.
Poundland swooped in to acquire 71 Wilko stores, and B&M purchased 51 more sites, integrating them into their own brands.
