Maplin collapses as rescue talks fail

One of the UK’s biggest electronics retailers collapsed into administration, after talks with the buyers failed to secure a sale.

Maplin, which has more than 200 shops and 2,300 employees, will continue to work through the process.

The business of the face of the collapse of the pound after the Brexit vote, weak consumer confidence and a withdrawal of credit insurance.

These factors have made it “impossible” to raise capital, boss Graham Harris said.

The news came shortly after the retailer Toys R Us has gone into administration.

“We believe that the passion that Maplin has a place on the main Road, and that our trust, credibility and expertise meets a need of the customer that is not supported elsewhere,” Mr Harris said.

Maplin now work with administrators PwC “in order to achieve the best possible result for all our colleagues and stakeholders”, Mr Harris added.

PwC has said that the “explore all opportunities to find a new owner.”

Shops will be open as usual in this period, and there are no plans to close stores or to do layoffs at the time, PwC said.

Any customer order will be delivered, while the gift cards will continue to be accepted in shops for the time being, he added.Mail order

Along with Hussain, joint administrator and partner PwC, said: “The challenging conditions in the UK retail sector are well documented.

“Like many other retailers, Maplin has been hit hard by a slowdown in consumption and imports more expensive, as the pound has weakened,” he said.

“The staff were paid February’s wages, and will continue to be paid for future work, while the company is in administration”.

Maplin has 2,335 staff, with 217 stores and an annual turnover of £235.8 m. In the UNITED kingdom and Ireland, and has its headquarters in London and Rotherham.

It started out as a mail-order business in 1972, supplying electronic components for hobbyists.

Maplin has opened its first store in Westcliff-on-Sea, Essex, in 1976.

After changing hands several times, the chain was owned by Rutland, Partner since 2014.

The potential buyers had included Edinburgh Woollen Mill, clothing company that owns Peacocks, Country Casuals, and many other retailers.

However, talks are understood to be divided.

High Street chains have been severely affected by the decline in consumer spending, increased inflation and competition from online rivals.

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