Electronics retailer Maplin has collapsed into administration, placing over 2,300 UK jobs at risk, after attempts to rescue the company were unsuccessful.
Zelf Hussain, Toby Underwood and Ian Green of accountancy firm PwC were today (28 February) appointed joint administrators of Maplin Electronics Limited.
The company, which will continue to trade, has an annual turnover of £235.8m and operates 217 stores across the UK and Ireland and has head offices in London and Rotherham.
Maplin’s private equity owner, Rutland, was in talks with Edinburgh Woollen Mill about a potential sale but talks have collapsed.
“I can confirm this morning that it has not been possible to secure a solvent sale of the business and as a result we now have no alternative but to enter into an administration process,” said CEO Graham Harris.
Harris said the business was hit by a combination of impacts from sterling devaluation post Brexit, a weak consumer environment and the withdrawal of credit insurance.
“These macro factors have been the principal challenge not the Maplin brand or its market differentiation,” he stressed.
“We believe passionately that Maplin has a place on the high street, and that our trust, credibility and expertise meets a customer need that is not supported elsewhere.”
Zelf Hussain, joint administrator and PwC partner, added: “The challenging conditions in the UK retail sector are well documented. Like many other retailers, Maplin has been hit hard by a slowdown in consumer spending and more expensive imports as the pound has weakened.
“Our initial focus as administrators will be to engage with parties who may be interested in acquiring all or part of the company. We will continue to trade the business as normal whilst a buyer is sought.”
Maplin’s collapse follows news that retailer Toys R Us also entered administration, putting 3,000 jobs at risk.