Red Letter Days saved by Theo Paphitis

Ailing experience gift company Red Letter Days has been sold as a going concern for an undisclosed sum to AIC, backed by entrepreneurs Theo Paphitis and Peter Jones. Paphitis is chairman of lingerie retailer La Senza and owner of stationer Ryman.

Red Letter Days was placed into administration yesterday as a result of cash flow problems and Kroll was appointed as administrator. The company has about 130 employees and the deal effectively safeguards the future of the business and jobs of staff. The administrators said that they had received enquiries from a number of interested parties.

Kroll administrator Andrew Pepper said: ‘We are very pleased to have completed the sale of Red Letter Days Quickly. The new owners have detailed to us that they intend to do all they can to honour voucher holders and they will work with suppliers and retail outlets which sell the vouchers to avoid further disruption to customers.’

One of the retailers that will not be dealing with the company is Debenhams. A spokesman for the department store group confirmed that concessions within its stores including Birmingham Bullring and a number of stores across London were closed yesterday and it does not intend to re-open them. Debenhams customers who hold vouchers have been advised by the retailer to make enquiries with Red Letter Days.

Debenhams decision to cut ties with the company could have serious repurcussions for its new owners attempts to get it back on track, as the department store chain represents 60 per cent of the gifts company’s retail channel to market. Other retailers with Red Letter Days concessions include Harrods, Selfridges, Beales, Bentalls Jenners and Fenwicks.