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Vivid Imaginations was founded in 1992 by former Matchbox Toys UK managing director Nick Austin and Finance Director Alan Bennie, with a loan of £380,000 from friends. The annual company turnover was £9.8 m in its first year and increased to over £20 m in 1996. The increase was partly due to acquiring the rights to distribute Disney and The Simpsons products in 1996 and distributing the Toy of the Year, the Pogmaker. Jordan Group, a private equity company from New York City, bought an 80% stake in Vivid in 1998 for £25 m. In 1999, Vivid started distributing Sindy and obtained the rights to Playmates Toys and Toy Biz products.
Vivid became the third-largest advertiser in the United Kingdom and the number three toy company in 2000.