Maplin collapses as rescue talks fail

One of the UK’s biggest electronics suppliers has collapsed into administration right after talks with buyers failed to protected a sale.

Maplin, which has more than 200 stores plus 2, 300 staff, will continue to keep trade through the process.

The business faced the slump within the pound after the Brexit vote, vulnerable consumer confidence and a withdrawal associated with credit insurance.

These factors made it “impossible” to boost capital, boss Graham Harris mentioned.

The news came soon after merchant Toys R Us went into management .

“We think passionately that Maplin has a put on the High Street and that our believe in, credibility and expertise meets a client need that is not supported elsewhere, inch Mr Harris said.

Maplin will now work with administrators PwC “to achieve the best possible outcome for all those of our colleagues and stakeholders”, Mister Harris added.

PwC said it would “explore all for you to find a new owner”.

Stores may open as normal during this time, plus there are no plans to near shops or make redundancies right now, PwC said.

Any kind of outstanding customer orders will be shipped, while gift cards will continue to be approved in stores for the present, it additional.

Mail purchase

Zelf Hussain, shared administrator and PwC partner, mentioned: “The challenging conditions in the UK store sector are well documented.

“Like many other retailers, Maplin continues to be hit hard by a slowdown within consumer spending and more expensive imports as the pound has weakened, inch he said.

“Staff have been paid their February income and will continue to be paid for future function while the company is in administration. inch

Maplin has two, 335 staff, 217 stores plus an annual turnover of £ 235. 8m. It operates in the UK plus Ireland and has head offices working in london and Rotherham.

This began as a mail-order business within 1972, providing electronic components in order to hobbyists.

Maplin opened up its first shop in Westcliff-on-Sea in Essex in 1976.

After changing hands many times, the chain has been owned simply by Rutland Partners since 2014.

Potential buyers had included Edinburgh Woollen Mill, the clothing corporation that owns Peacocks, Country Casuals and several other retailers.

However , talks are understood to get broken down.

High Street stores have been badly affected by lower customer spending, higher inflation and competitors from online rivals.