Red Letter Days

The company was founded by former Dragons' Den entrepreneur Rachel Elnaugh, who developed the idea for Red Letter Days after creatively packaging cricket tickets to give to her father.{{Cite web|url=http://www.celebpreneur.com/2007/08/rachel-elnaugh-interview/|title=Rachel Elnaugh interview|date=11 August 2007|archive-url=https://web.archive.org/web/20071014205132/http://www.celebpreneur.com/2007/08/rachel-elnaugh-interview/|archive-date=14 October 2007|access-date=17 January 2019}} She saw the opportunity for packaging intangible experiences as gifts and established Red Letter Days in 1989.[http://www.motheratwork.co.uk/Interviews/?article=130 Interview with Rachel Elnaugh, Founder of Red Letter Days] Tyler Publishing, November 2004

The business began to take off after placing brochure inserts into national newspapers and magazines in the lead-up to Christmas 1990.{{Cite web|url=https://moneyweek.com/31392/my-first-million-rachel-elnaugh-of-red-letter-days/|title=My First Million: Rachel Elnaugh of Red Letter Days|date=2006-08-01|website=MoneyWeek|language=en-GB|access-date=2019-01-28}}

Red Letter Days struggled after a "disastrous over-expansion in 2002."{{Cite web|url=https://www.business-live.co.uk/enterprise/former-dragons-den-star-red-16498261|title=Rachel Elnaugh lifts the lid on her failed multi-million pound business|last=James|first=Laura|date=2019-06-28|website=birminghampost|access-date=2020-03-26}}

In 2005, Sir Rodney Walker was listed as chairman in anticipation of listing on the Alternative Investment Market, hoping to float on the stock market later that year.{{Cite news|url=http://news.bbc.co.uk/2/hi/business/4736623.stm|title=Gift firm calls in administrators|date=2005-08-01|access-date=2019-01-28|language=en-GB}}

After expanding via supermarket distribution, Red Letter Days went into administration on 1 August 2005;{{Cite news|url=https://www.telegraph.co.uk/finance/2919969/Red-Letter-Days-experiences-a-plunge-into-administration.html|title=Red Letter Days experiences a plunge into administration|last=Osborne|first=Alistair|newspaper=The Daily Telegraph|date=2005-08-01|access-date=2019-02-07}} the remaining assets and inventory were bought by fellow Dragons' Den entrepreneurs Theo Paphitis and Peter Jones.{{Cite news|url=https://www.telegraph.co.uk/finance/markets/2809694/Red-Letter-Days-7.2m-in-red-despite-TV-dragons-efforts.html|title=Red Letter Days £7.2m in red despite TV dragons' efforts|last=Brodie|first=Sophie|journal=Daily Telegraph|date=2007-05-28|access-date=2019-02-07|language=en-GB|issn=0307-1235}} They revealed on Alan Carr: Chatty Man that they made the decision to purchase the company whilst under the influence of alcohol. Following the acquisition, Jones and Paphitis said that all vouchers bought on a credit card or by corporate customers had been honoured.{{Cite news|url=https://www.theguardian.com/money/2005/aug/02/consumernews.business|title=Rescue plan for Red Letter Days|agency=Press Association|date=2005-08-02|work=The Guardian|access-date=2019-01-28|language=en-GB|issn=0261-3077}}

Although Elnaugh was at the helm before and at the time of the company's failure just days after the birth of her fourth child, she blames the problems on the actions of a previous CEO, Simon Vincent, whom she appointed in 2002 but who had left the company in early 2003, while she was in a non-executive role.{{cite web|url=http://technology.guardian.co.uk/businesssense/story/0,16568,1580218,00.html|title=Dragon still has fire in her belly|work=The Guardian|date=September 29, 2005|access-date=8 July 2009}}

ITV1's Tonight Programme offered a more critical explanation of the demise of Red Letter Days, citing unpaid suppliers and disappointed purchasers. The programme suggested that the business model failed to escrow or earmark supplier payment equity, instead using it for working capital. Elnaugh blamed the company's bankers, who placed £3 million in a bond they refused to release for use by the firm, despite the fact that some of it may have related to vouchers that had expired and were not recoverable against the business.{{vague|date=October 2022}} It was the funds held by the credit card company under this bond that enabled the new owners to honour vouchers issued prior to the company falling into administration. Mrs. Elnaugh admitted in her book Business Nightmares that her finance team had lost track of the company's voucher liabilities and its debts to suppliers.Page 169 of Business Nightmares by Rachel Elnaugh After Red Letter Days went into administration with a balance sheet deficiency approaching £9 million, Elnaugh left Dragons' Den.{{Cite web|url=http://www.independent.co.uk/news/business/news/the-city-diary-the-midas-ndash-or-maddison-ndash-touch-1968939.html|title=The City Diary: The Midas â€" or Maddison â€" touch|date=2010-05-09|website=The Independent|language=en|access-date=2019-01-28}}

Since 2005, Red Letter Days has continued to offer a wide range of experiences, including car racing, skydiving, white water rafting, hot air ballooning, paintball, bungee jumping, and spa days. Under Paphitis and Jones' ownership, the company went from administration to an annual turnover of over £20 million.{{Cite news|url=https://www.theretailbulletin.com/news/theo_paphitis_and_peter_jones_sell_red_letter_days_01-12-17/|title=Theo Paphitis and Peter Jones sell Red Letter Days|date=1 December 2017|work=The Retail Bulletin|access-date=28 January 2019}} They sold the now profitable Red Letter Days to Buyagift for an undisclosed price, claiming that "the time felt right and the sale will ensure an exciting and progressive next chapter in Red Letter Days' evolvement".{{Cite news|url=http://thembsgroup.co.uk/external/red-letter-days-sold-to-smartbox-group/|title=Red Letter Days sold to Smartbox Group – Travel & Leisure Executive Search|work=The MBS Group|access-date=2017-12-28}}

Red Letter Days was bought by the French multinational company Smart&co S.A.S in 2017,{{Cite news|url=https://www.bbc.com/news/business-42184504|title=We're out! TV Dragons sell Red Letter Days|date=2017-11-30|access-date=2019-02-07|language=en-GB}}{{Cite web|url=https://www.independent.ie/business/irish/dragons-deal-for-irishbased-gift-company-smartbox-36666407.html|title=Dragons' deal for Irish-based gift company Smartbox|website=Independent.ie|language=en|access-date=2019-02-07}} joining other brands like Buyagift,{{Cite web|url=https://www.bloomberg.com/research//stocks/private/snapshot.asp?privcapId=23351133|title=Company Overview of Red Letter Days Ltd|website=Bloomberg|access-date=25 January 2019}} Dakotabox{{Cite web|url=https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapid=301490665|title=Company Overview of Dakotabox Regalos y Ocio, S.L.|website=Bloomberg News |access-date=25 January 2019}} and Odisseias.{{Cite news|url=https://www.irishtimes.com/business/economy/gift-company-smartbox-plans-addition-of-100-dublin-jobs-1.3112017|title=Gift company Smartbox plans addition of 100 Dublin jobs|last=Hamilton|first=Peter|newspaper=The Irish Times|language=en|access-date=2019-01-25}} In June 2019, ownership of the company was transferred to Buyagift plc, and the limited company was put into voluntary liquidation with a declaration of solvency. SmartBox founder Pierre-Edouard Sterin and CEO John Perkins resigned, and a new CEO, Olivier Fajour, was appointed.

In July 2022, the Red Letter Days and Buyagift brands were bought by the Moonpig Group.

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• {{official website|https://www.redletterdays.co.uk/}}

Category:Companies established in 1989

Category:Re-established companies

Category:Privately held companies of the United Kingdom

Category:Giving

Category:1989 establishments in the United Kingdom

Category:2017 disestablishments in the United Kingdom

Category:2017 establishments in Ireland

Category:2017 establishments in France