Firm behind some of Britain's most iconic toys including Hornby, Airfix and Scalextric sounds alarm over £17million debt bomb
Legendary toy manufacturer, Hornby, has prepared a 'severe but plausible' plan where repayment of their £12.5million loan would need to be delayed.
By SHANNON MCGUIGAN, NEWS REPORTER
Published: 13:54 GMT, 10 January 2026 | Updated: 14:01 GMT, 10 January 2026
The firm behind some of Britain's most iconic toys, including Airfix and Scalextric cars, has accumulated £17.2 million of debt.
Legendary toy manufacturer, Hornby, has prepared a 'severe but plausible' plan where repayment of their £12.5million loan would need to be delayed.
Its most recent Companies House filing shows the company's losses after tax fell between 2024 and 2025, from £11.9million to £8.7million.
However, Hornby revealed Phoenix UK Fund temporarily increased its borrowing by £1.25 million in April 2025.
The equity fund has guaranteed that it will not demand repayment of the extra borrowed cash if the toy firm fails to pay other bills in the next year.
Meanwhile, directors have discussed 'severe but plausible' scenarios where they would not have the money to pay their loans on time.
In this situation, repayment of the £12.55million loan would be delayed. However, the Cayman Islands fund assured the firm that it would postpone collection if necessary.
Meanwhile, Mike Ashley, the retail boss behind Sports Direct, is in the shadows helping guide the company.
Legendary toy manufacturer, Hornby, has prepared a 'severe but plausible' plan where repayment of their £12.5million loan would need to be delayed
It most recent Companies House filing showed their debt had increased from £14.2million to £17.2million
In 2024, Mr Ashley's purchased an 8.9 per cent share of Hornby, and his Frasers Group has been instructing them on plans to cut costs.
Last year, the toy manufacturer was removed from the London Stock Exchange and went private amid a structural shake-up.
And last November, the firm's chief financial officer, Kirstie Gould, left the business.
It comes at a difficult time for the toy group, facing various challenges such as US operations shrinking and manufacturers in China and Vietnam being slapped with trade tariffs.
The US portion of the company reported a £1 million loss as Hornby prepares to shut down its warehouse across the pond.
Meanwhile, on British soil, the firm is wrestling with increasing bills after the national minimum wage rose, sparking distribution costs to skyrocket.
However, Hornby's did see a 23 per cent increase in sales over the festive period last December.