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Summary
- Hornby has temporarily stopped all its orders other than the UK due to uncertainty over Brexit
- The company has said that port bottleneck problems are also impacting its operations
- Hornby CEO Lyndon Davies said the companies which import large numbers of goods from the UK have been struggling with the spike in demand for goods
Amid the uncertainty over Brexit and disruption at UK ports, the British model railway maker brand Hornby (LON:HRN) has temporarily stopped all its global orders.
On its official Twitter page, the toy-train maker wrote that the firm expects the customers to understand the difficult situation which the company is facing at the moment and hopes that it finds a solution soon.
The toy-train maker said it is not going to take any non-UK order until 4 January, after the Brexit transition period comes to an end, and the European Union and the UK trade moves to a new set of regulations that have yet not been decided.
Hornby, which also manufactures Scalextric racing models and Corgi cars, added that port congestion problems are also impacting the company’s operations.
Expressing his displeasure over the uncertainties, Lyndon Davies, the chief executive officer at Hornby, said the companies which import large numbers of goods from the UK have been struggling with the spike in demand for goods and other items before the 1 January Brexit time limit. This is adding more woes to the international issues in the shipping sector which have already caused substantial interruptions for imports from east Asia.
He said the business enterprises are suffering and nobody has an idea what is happening or what needs to be done to sort out this mess.
Davies added the toy-train maker had taken delivery of one consignment of Batman vs Joker Scalextric sets; however, it is now stuck for nearly three weeks due to the delays at the ports.
If the UK moves ahead without a trade deal, the Hornby’s toys, which are exported to the European Union, could face taxes of up to 4.7 per cent. In fact, the customer in the European Union could be compelled to pay the duty price by themselves before getting the product in case taxes are levied while the goods from Britain are delayed or stuck in transit. One of the major concerns, which the toy-train maker wants to avoid.
Also read: Chaos at British ports impact businesses
In view of this scenario, Hornby has stored sufficient toys to make sure that there is no shortage of goods in the case of demands from customers, especially for imported goods such as train sets.
Taking account of the uncertainty over trade deal after the Brexit, many companies in the UK are accumulating goods and other items to avoid any disruption in case the trade deal between the UK and the EU will not materialise.
For instance, Alex Baldock, the chief at Dixons Carphone, which is the owner of Currys PC World, said the company is prepared as far as Brexit is concerned. It seems there could be delays in shipments for two days, and the firm is ready to handle it.
