Thorn EMI
Company type | Public |
---|---|
Industry | Music, video, defence equipment |
Founded | 1979Thorn Electrical Industries and The EMI Group | with the merger of
Defunct | 1996 |
Fate | Demerged and subsequently broken up |
Headquarters | London , England |
Key people |
|
Subsidiaries | EMI |
Thorn EMI was a major British company involved in consumer electronics, music, defence and retail. Created in October 1979, when
History
The company was formed following the board of
Soon after the merger, Thorn EMI divested many of the group's leisure operations. In July 1980, seven hotels, including the
In May 1984, the Company attempted to merge with
In April 1986, Thorn EMI sold its film and video operations to businessman
Thorn EMI acquired the Mullard Equipment Limited ('MEL') division of Philips in 1990.[10]
Further divestment of operations took place during the 1990s. In 1991, its consulting, systems integration, and outsourcing service division –
On 16 August, 1996, Thorn EMI shareholders voted in favour of demerging Thorn from
Operations
Thorn EMI's wide range of business covered the following principal areas of activity; retail/rentals, electronics, defence, software, music, television broadcasting, lighting and film and cinema.
Retail and rental
Thorn Television Rentals (TTR) comprised two companies on merger, Radio Rentals and DER (Domestic Electric Rentals Ltd). The EMI group also included the HMV stores.[11]
In 1987, Thorn EMI acquired Rent-A-Center in the United States for $594 million which had 469 stores on acquisition.[14][15]
In 1989, Rumbelows was acquired by Radio Rentals and all Rumbelows' rental accounts were transferred to Radio Rentals, bolstering its market position. With its core business removed, Rumbelows sought a new identity as a more conventional (non-rental) retailer, even adding computers to the product mix.
In 1992, Thorn converted some of the remaining Rumbelows shops into DER, Multibroadcast or Radio Rentals branches.[16] Some stores were also converted to the Fona brand.[17][18]
By the 1990s, Rumbelows was making losses and Thorn closed the remaining 285 Rumbelows shops and 36 Fona stores in 1995.[19]
In 1995 Thorn EMI bought Dillons the Bookstore from Pentos and immediately closed 40 of the 140 Dillons bookstore locations. Of the remaining 100 stores, most kept the name Dillons, while the remainder were Hatchards and Hodges Figgis.[20][21]
Music
The EMI label expanded greatly as part of Thorn EMI. In 1989, Thorn EMI bought a 50% interest in Chrysalis Records, buying the outstanding 50% in 1991. In one of its highest-profile and most expensive acquisitions, Thorn EMI took over Richard Branson's Virgin Records in 1992 for £510 million.[11]
Television broadcasting
Thorn EMI was the majority shareholder in the London-based ITV broadcaster Thames Television until a share flotation in 1984.
In 1985, the company attempted to sell their stake to Carlton Communications but this was blocked by the governing body of ITV, the Independent Broadcasting Authority.
Thames Television was acquired by
Lighting
In 1987 the purchase of the Jarnkonst group of Nordic light fitting companies by Thorn Lighting and closure of the Buckie lamp factory signalled a new drive by parent Thorn EMI to trade an export and 'colonies' mentality for a multi-cultural, international outlook, one that took account of the forthcoming Single European Act. Gaining critical mass in lighting fixtures – defined as 10% market share in any one county – was identified as a priority.
In 1988 Thorn EMI bought the French group Holophane to gain access to its luminaire subsidiary, Europhane.
In November 1990, Thorn EMI announced that it had agreed to sell its principal light source interests to GE Lighting. Under the agreement, GE acquired the lamp plants at Enfield, Leicester[23] and Wimbledon, as well as Thorn's 51% in SIVI Illuminazione in Italy and 100% holding in Gluhlampenfabrik Jahn. Thorn EMI subsequently closed its Merthyr Tydfil lamp factory, consolidated its UK distribution centres and sold its South African business.
In 1994, following a leveraged management buy-out, Thorn Lighting Ltd floated on the London Stock Exchange as TLG plc (the Thorn Lighting Group).
Defence
From its formation until the mid-1990s, Thorn EMI was one of the United Kingdom's largest defence companies.
The MEL Division, acquired from Philips, was involved in radar, electronic warfare, and communications. The MEL communications business was sold to Thomson-CSF, now Thales.
In 1995, the various defence businesses were sold:
- Thorn EMI Electro Optics to Pilkington Optronics
- Thomson Thorn Missile Electronics to Thomson-CSF, now Thales
- Thorn Sensors Group to Racal (to become Racal-Thorn Wells, now also part of Thales)
Machine Tools
In the early 1980s, Thorn EMI Machine Tools manufactured Computerised Numerical Controlled (CNC) machine tools at its EMI-MEC Limited factory in Chandlers Ford, Eastleigh, Hampshire.
Computer software
In the early to mid-1980s, Thorn EMI Video Programmes released a number of
In 1991, its consulting, systems integration, and outsourcing service division –
From 1981 until about 1983, Thorn EMI Video Programmes was based in the Thorn EMI head office, Orion House on Upper St Martin's Lane, near
Fire and security systems
Thorn Security installed and serviced all types of electronic security systems from their bases around the UK, inheriting EMI's well-known AFA-Minerva lineage. The business was absorbed into
Business Communications
This division, based in Marlow, provided hotels with televisions and related equipment. It also embarked upon a project called Hotel 3000, which provided interactive set-top boxes for hotel rooms in the late 1980s.
After Thorn's demerger, this division started operating as Quadriga[25]
Advanced Product Development Centre
This small subsidiary further developed existing products, as well as introducing new ones. It was based in St. Lawrence House, Broad Street, Bristol.
Consumer electronics
By 1992, the Ferguson TV factory in Gosport had closed, ending a long period of manufacturing of Ferguson TVs in the UK.
VCRs were sourced until the early 1990s by a joint company called J2T, established by JVC, Thorn (Ferguson), and Telefunken. From around 1991, VCRs were sourced from Thomson alone.
One important aspect of Thorn EMI's business was its ability to manufacture one of its Ferguson televisions, and then make it available for rental through its rentals sector, or sell it through its retail sector.
The group was in partnership with Ericsson in the UK telecommunications company Thorn Ericsson but sold its 51% stake to Ericsson in 1988.[15]
Thorn EMI's film and video interests
Following the merger, EMI's film division was renamed Thorn EMI Screen Entertainment. The newly merged company continued the film interests EMI had acquired over the preceding decade; these had included the former Associated British Picture Corporation, and their facilities at Elstree Studios, Shenley Road, Borehamwood and ABC Cinemas.
Thorn EMI Video was established in 1981. Thorn EMI released films on video from various film companies including Orion Pictures (First Blood, The Terminator), New Line Cinema (The Evil Dead, Xtro), and Universal (Bad Boys, Frances) in the 1980s.
Thorn EMI joined HBO in November 1984 to create Thorn EMI/HBO Video.[26]
In April 1986, Thorn EMI sold Thorn EMI Screen Entertainment and the film library, Thorn EMI Video, and ABC Cinemas to businessman
Leisure
Many of EMI's leisure interest were sold the year after the merger but EMI Social Centres chain of bingo halls remained with Thorn EMI.[6]
In 1983, the Winter Gardens in Blackpool were sold to First Leisure.[30]
After demerger
- Thorn was purchased by Nomura Principal Finance Group in 1998, which subsequently became Terra Firma Capital Partners (who also owned EMI for a period). It disposed of Thorn in 2007 to a private buyer.[31]
- EMI announced in November 2011 that it would sell its music arm to Vivendi's Universal Music Group and its publishing business to a Sony/ATV consortium.
References
- ^ a b Vaines, Colin (10 November 1979). "EMI caves in to £169m bid". Screen International. p. 1.
- ^ EMI: a giant at war with itself, Telegraph.co.uk, 18 January 2008
- ^ Falk, Quentin (20 October 1979). "EMI rejects £147m Thorn bid". Screen International. p. 1.
- ^ Gunn, Catherine (31 July 1980). "Brewery buys Thorn EMI hotels". The Times. p. 17.
- ^ "Thorn to sell Tricity". The Times. 16 August 1980. p. 17.
- ^ a b c d "THF buys £16m Thorn EMI leisure interests". The Times. 1 November 1980. p. 17.
- ^ "Hannah takes Thistle Hotels to the country". Caterer & Hotelkeeper. 177 (3405): 81. 30 January 1986.
- ^ Reversing corporate diversification and the use of the proceeds from asset sales: The case of Thorn EMI Financial Management, Winter 2001
- ^ a b "Vertical integration". Terramedia. Retrieved 21 February 2018.
- ^ "Scout & Pilot". Archived from the original on 11 July 2011.
- ^ a b c d "THORN EMI plc" (PDF). Kronemyer.com. Archived from the original (PDF) on 14 December 2013. Retrieved 18 December 2022.
- ^ a b "Data Sciences (Company Profile)". Archived from the original on 9 March 2016. Retrieved 29 August 2012.
- ^ Vote solid for Thorn demerger, Independent.co.uk, 17 August 1996
- ^ "THORN EMI MOVES IN ON US RETAIL MARKET WITH $600m TENDER FOR RENT-A-CENTER". Tech Monitor. 29 July 1987. Retrieved 18 December 2022.
- ^ a b "Thorn EMI Annual Report 1988" (PDF). Kronemeyer. Archived from the original (PDF) on 27 September 2012. Retrieved 18 December 2022.
- ^ "Thorn to pull out of electrical retailing market". www.upi.com. 31 January 1992. Retrieved 3 November 2022.
- ^ "Thorn EMI pulls plug on its 'beached whale'". Independent.co.uk. 8 February 1995. Retrieved 16 January 2013.
- ^ "UK: THORN EMI'S FISSILE FUTURE". managementtoday.co.uk. 1 August 1994. Retrieved 3 November 2022.
- ^ "An empty former branch of Rumbelows in January 2007". flickr.com. 14 January 2007. Retrieved 21 April 2022.
- ^ Stevenson, Tom (20 March 1995). "'Second time lucky' hope of Rymans' buyer". Independent. London. Retrieved 8 March 2020.
- ^ Shepherd, John (25 March 1995). "Thorn EMI closes 40 Dillons bookstores". Independent. London. Retrieved 8 March 2020.
- ^ Last, Richard (9 February 1994). "Media: How Thames turned the tide: From failed franchisee to thriving 'indie' producer: there can be life after broadcasting death, as Richard Last witnessed". The Independent. Retrieved 11 April 2018.
- ^ "Lights finally dim as iconic Thorn factory bites the dust". thisisleicestershire.co.uk. 11 May 2011. Retrieved 22 February 2012.
- ^ "IBM to acquire Data Sciences". New Straits Times. Retrieved 29 August 2012.
- ^ "Quadriga Company History". Archived from the original on 4 December 2008.
- ^ Billboard (1 December 1984, page 6)
- ^ "Cannon Sells British Library for $85 Million : 2,000-Title Film Collection Nets $40 Million Less Than Ailing Firm Had Forecast". Los Angeles Times. 2 May 1987.
- ^ "HBO said it is buying out HBO/Cannon Video". Los Angeles Times. 7 April 1987.
- ^ "COMPANY NEWS; Cannon Will Sell Home Video Stake". The New York Times. 7 April 1987.
- ^ "Crown jewels of resort". Blackpool Gazette. 3 December 2009. Retrieved 6 December 2009.[dead link]
- ^ "Terra Firma - Thorn". Terrafirma.com.