Thorn EMI
| Company type | Public |
|---|---|
| Industry | Consumer electronics, music, defence, retail, software, lighting |
| Predecessor | Thorn Electrical Industries, EMI |
| Founded | October 1979 |
| Defunct | 1996 |
| Fate | Split into Thorn plc and EMI Group plc |
| Headquarters | United Kingdom |
Area served | United Kingdom, United States, Europe |
Key people | Bernard Delfont (CEO), Sir John Read (Chairman), Sir Richard Cave (Chairman) |
| Products | Consumer electronics, music production, defence contracting, television broadcasting, lighting solutions, software, retail rental services |
Thorn EMI was a prominent British corporation involved in sectors such as consumer electronics, music, defence, and retail. It was established in October 1979 through the merger of Thorn Electrical Industries and EMI. The company was publicly traded on the London Stock Exchange and was once part of the FTSE 100 Index. In 1996, Thorn EMI separated into distinct companies.
History
The formation of Thorn EMI followed EMI's board acceptance of a £169 million bid from Thorn Electrical Industries in November 1979. Thorn identified EMI as a strategic complement to its interests in music and the burgeoning home video industry, merging Thorn’s hardware production capabilities with EMI’s content creation expertise. Key figures such as EMI CEO Bernard Delfont, chairman Sir John Read, and Capitol Records head Bhaskar Menon joined the board of Thorn EMI, with Read appointed deputy chairman and Thorn’s Sir Richard Cave serving as chairman.
Soon after the merger, Thorn EMI began divesting several leisure-related assets. In July 1980, it sold a portfolio of seven hotels—including the Tower Hotel, London and Royal Horseguards Hotel—alongside 12 Angus Steakhouse restaurants to Scottish & Newcastle Breweries for £23 million. Later that year in November, further leisure properties—including Blackpool Tower, amusement parks, sports centres, piers, pubs, restaurants, four theatres such as the Prince Edward Theatre, and London’s Empire Ballroom and Cinema—were sold to Trust House Forte for £16 million. Lord Delfont assumed the roles of chairman and CEO within THF's leisure division.
In May 1984, Thorn EMI explored a merger with British Aerospace and went on to acquire microchip producer INMOS in July of the same year. The company divested its film and video businesses in April 1986 to entrepreneur Alan Bond.
By 1990, Thorn EMI had acquired Philips' Mullard Equipment Limited ('MEL') division.
Throughout the 1990s, Thorn EMI continued to streamline its portfolio: in 1991, its consulting and outsourcing arm (Thorn EMI Software) was subject to a management buyout; Thames Television was sold off in 1993; Thorn Lighting Ltd underwent a leveraged management buyout and was floated as TLG plc in 1994; and defence-related operations were disposed of in 1995.
On 16 August 1996, shareholders sanctioned the separation of Thorn from EMI. The electronics and rental divisions were rebranded as Thorn plc, while the music segment reconstituted itself as EMI Group plc.
Operations
Thorn EMI operated across multiple industries including retail and rentals, electronics manufacturing, defence contracting, software development, music production, television broadcasting, lighting solutions, and film production.
Retail and rental
At the time of the merger, Thorn Television Rentals (TTR) combined Radio Rentals with DER (Domestic Electric Rentals Ltd). Additionally, the EMI group owned HMV retail outlets. Radio Rentals—acquired in 1968 for £155 million—had grown into Great Britain’s largest television rental company with approximately 1,300 stores serving 2.6 million customers.
In 1987, Thorn EMI entered the US market by purchasing Rent-A-Center for $594 million, adding 469 outlets to its portfolio. Two years later in 1989, Radio Rentals acquired rental accounts from Rumbelows, enhancing its market share. Meanwhile, Rumbelows redirected its focus toward traditional retailing including computer sales.
By 1992, several Rumbelows locations were converted into DER, Multibroadcast, or Radio Rentals branches; others were rebranded as Fona stores. Due to ongoing financial losses during the early 1990s, Thorn closed all remaining Rumbelows (285 stores) and Fona (36 stores) outlets by 1995.
Also in that year, Thorn EMI acquired Dillons the Bookstore from Pentos but immediately shuttered 40 out of its 140 shops. The remaining stores continued operating under the Dillons name or as Hatchards and Hodges Figgis.
Music
Under Thorn EMI, the EMI label experienced considerable growth. In 1989, Thorn EMI secured a 50% ownership interest in Chrysalis Records, eventually acquiring complete control by 1991. A significant expansion occurred in 1992 when Thorn EMI purchased Richard Branson's Virgin Records for £510 million.
Television broadcasting
Thorn EMI held the majority stake in London-based ITV broadcaster Thames Television until it was publicly listed in 1984.
That same year, Thorn EMI, along with its partners, launched satellite channels including Music Box, Premiere, and The Children's Channel.
In 1985, the Independent Broadcasting Authority prevented Thorn EMI from selling its Thames shares to Carlton Communications.
By February 1986, Thorn EMI divested its 50% interest in The Music Channel, owner of Music Box, to Virgin Group for £600,000.
Pearson Television acquired Thames Television in 1993.
Lighting
The acquisition of Nordic Jarnkonst group by Thorn Lighting in 1987, coupled with the closure of the Buckie lamp factory, signaled a strategic pivot toward international markets in anticipation of the Single European Act. The objective was to secure a minimum 10% market share in lighting fixtures within individual countries.
In 1988, Thorn EMI expanded its lighting portfolio by purchasing the French company Holophane, gaining access to its luminaire subsidiary Europhane.
November 1990 saw Thorn EMI agreeing to sell its primary light source operations to GE Lighting. This deal included lamp manufacturing facilities at Enfield, Leicester, and Wimbledon, as well as stakes in Italy’s SIVI Illuminazione and Gluhlampenfabrik Jahn. Following this transaction, Thorn EMI closed its Merthyr Tydfil lamp factory, streamlined UK distribution operations, and divested its South African interests.
After a leveraged management buyout in 1994, Thorn Lighting Ltd was floated on the London Stock Exchange under the name TLG plc (Thorn Lighting Group).
Defence
Up until the mid-1990s, Thorn EMI ranked among the UK's leading defence contractors. Its MEL Division—acquired from Philips—focused on radar systems, electronic warfare technologies, and communications equipment. The communications segment was later sold to Thomson-CSF, now known as Thales.
In 1995, Thorn EMI divested several defence-related businesses:
- Thorn EMI Electro Optics was sold to Pilkington Optronics
- Thomson Thorn Missile Electronics transferred to Thomson-CSF (currently Thales)
- Thorn Sensors Group was acquired by Racal, later becoming Racal-Thorn Wells and now part of Thales
- Thorn Microwave Devices underwent a management buyout to become TMD Technologies Ltd (subsequently acquired by CPI in 2021 and now operating under CPI-EDB within Transdigm Inc)
- Thorn Electron Tubes also completed a management buyout and became Electron Tubes Ltd
Machine Tools
During the early 1980s, CNC machine tools were manufactured by Thorn EMI Machine Tools at its EMI-MEC Limited facility located in Chandlers Ford, Hampshire.
Home software
Throughout the early to mid-1980s, Thorn EMI Video Programmes developed and published various home computer games under its own brand. Titles included Computer War, Tank Commander, and Snooker and Billiards, with the latter achieving No. 6 on the UK Atari Charts. Initially operating from Orion House in central London until around 1983, this division later moved to Soho.
In 1984, it was rebranded as Creative Sparks, which was sold through a management buyout in 1985 but subsequently entered receivership by 1987.
Business software and services
In 1991, Thorn EMI's division specializing in consulting, systems integration, and outsourcing—known as Thorn EMI Software—was divested through a management buyout and rebranded as "Data Sciences Ltd." The management team and employees acquired the unit for £82 million, despite it generating a turnover of £117 million. Subsequently, IBM purchased Data Sciences plc in 1996 for £95 million.
Fire and security systems
Thorn Security was responsible for installing and maintaining electronic security systems throughout the United Kingdom, continuing the legacy of EMI's AFA-Minerva operations. After the separation from EMI, this business was integrated into ADT, which replaced most of Thorn’s iconic red bellboxes with ADT’s distinctive hexagonal models. Nevertheless, numerous Thorn-manufactured fire safety devices remain operational, with ADT producing replacement parts and systems derived from Thorn designs until recent times. The majority of bells and sounders were actually rebranded products originally made by Friedland, Fulleon Cooper, or Hosiden Besson.
Business Communications
Operating out of Marlow, this segment provided television sets and associated equipment primarily to hotels. A key initiative was the Hotel 3000 project in the late 1980s, which introduced interactive set-top boxes into hotel rooms. Following Thorn’s demerger, this division continued its operations under the name Quadriga.
Advanced Product Development Centre
Situated within St Lawrence House, Broad Street in Bristol, this subsidiary concentrated on product improvement and innovation.
Management: Derek Williams Accounting: John Peacock Secretarial staff: Dawn Chick & Rachel Bessell Engineering team: Jan Wojna, Frank Shirvani, Alan Drake, John Linney, Martyn Wyatt
Ferguson
Ferguson Radio Corporation was part of Thorn Electrical Industries and later Thorn EMI until its divestment to Thomson in 1987. Ferguson specialized in consumer electronics such as televisions and radios. The design and manufacture of Ferguson TVs persisted in the UK until the early 1990s, incorporating some Thomson-designed models into their lineup. By 1992, the Ferguson television manufacturing plant located in Gosport closed down, marking the end of UK-based production.
Initially, VCRs were supplied through J2T—a joint venture involving JVC, Thorn (Ferguson), and Telefunken—until around 1991 when Thomson assumed sole supplier status. Thorn EMI capitalized on its capacity to produce Ferguson televisions for both rental and retail markets, thereby broadening its commercial footprint.
Other consumer electronics subsidiaries
During the 1980s, Prism Micro Products was briefly under Thorn EMI ownership.
Thorn EMI held a controlling 51% interest in UK telecommunications company Thorn Ericsson before divesting it to Ericsson in 1988.
Kenwood Limited, recognized for small household appliances, was once part of the group but is now owned by DeLonghi.
Thorn EMI's film and video interests
Following the merger, EMI's film division was renamed Thorn EMI Screen Entertainment, maintaining EMI’s cinematic assets acquired over the prior decade—including those from the former Associated British Picture Corporation—and facilities at Elstree Studios on Shenley Road in Borehamwood as well as ABC Cinemas.
Established in 1981, Thorn EMI Video distributed films from studios such as Orion Pictures (including First Blood and The Terminator), New Line Cinema (The Evil Dead, Xtro), and Universal (Bad Boys, Frances). The label also released early home software titles.
In November 1984, Thorn EMI entered into a partnership with HBO, forming Thorn EMI/HBO Video. By April 1986, Thorn EMI sold Thorn EMI Screen Entertainment—including its film library—along with Thorn EMI Video and ABC Cinemas to entrepreneur Alan Bond. Bond then transferred these assets to The Cannon Group a week later. HBO retained involvement with the video business as it transitioned to HBO/Cannon Video before ultimately rebranding as HBO Video in 1987.
Leisure
Following the merger, the majority of EMI's leisure assets were divested; nevertheless, the EMI Social Centres bingo hall chain continued to be held by Thorn EMI.
In 1983, ownership of the Winter Gardens in Blackpool was transferred to First Leisure.
After demerger
- In 1998, Thorn was purchased by the Principal Finance Group of Nomura, which subsequently evolved into Terra Firma Capital Partners—a previous owner of EMI as well. Terra Firma later disposed of Thorn to a private entity in 2007.
- EMI declared in November 2011 that it would sell its music division to Universal Music Group, a subsidiary of Vivendi, while its publishing business was acquired by a consortium led by Sony/ATV.