Fears for jobs at Maplin store
Electronics giant goes into administration
East Kilbride has been dealt another retail jobs blow following the announcement that Maplin has collapsed into administration.
The electronics giant failed to secure a sale after entering into talks with potential buyers meaning 217 stores across the UK – including the town’s Princes Square branch – face an uncertain future.
The leading retailer employs 2335 members of staff and has an annual turnover of £235.8 million.
But the business suffered following a slump in the pound after Brexit and was hit hard by a slowdown in consumer spending and a withdrawal of credit insurance.
The news comes just weeks after retailer Toys R Us entered into administration, with the loss of 20 local jobs at its East Kilbride branch.
Staff received their wages for February and have been assured they will be paid while attempts are made to find a buyer.
Maplin is now working with administrators Zelf Hussain, Toby Underwood and Ian Green of PricewaterhouseCoopers (PwC) .
Maplin boss Graham Harris said: “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.”
The joint-administrators will continue to trade the business as normal while discussions take place with interested parties in an attempt to find a buyer.
Mr Hussain, joint-administrator and PwC partner, 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 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.
“Staff have been paid their February wages and will continue to be paid for future work while the company is in administration.”
Any outstanding customer orders will be delivered, while gift cards will continue to be accepted in stores meantime.
Central Scotland Labour MSP Monica Lennon said: “It’s bitterly disappointing that another company have collapsed into administration and so soon after Toys R Us announced redundancies.
“With four Maplin stores in my parliamentary region – Hamilton, East Kilbride, Falkirk and Cumbernauld – I am extremely concerned about the impact on my constituents. I have sought clarity from Maplin’s chief executive asking whether the Maplin stores in my parliamentary region face closure and whether there are plans to make redundancies.
“It is vital that Maplin now work with staff to ensure there is clarity over the implications on the workforce.”
East Kilbride SNP MSP Linda Fabiani said: “This is a real blow for the workers of the East Kilbride store who will understandably have a real worry over their future.
“Administrators should be supporting all staff concerned as well as keeping them up to date with all developments.
“The administrators should, of course, be doing everything possible to keep all stores open and I know the management of East Kilbride Town Centre will be doing all they can to retain the store.”
Graham Simpson, Central Scotland Tory MSP, said: “This is yet another blow to the retail sector in East Kilbride on the back of Toys R Us closing. My thoughts are with the staff affected.
“It is to be hoped that someone will take over the business, which is the victim of our changing shopping habits. I must admit that I always valued the personal service in the shop and the advice the knowledgeable staff gave.
“It would be a sad loss to the town centre.”
A spokesman for EK, East Kilbride stated: “The announcement that administrators have been appointed to Maplin is concerning for staff employed at the retailer’s stores across the country.
“Although we understand the EK store will continue to trade as normal for the foreseeable future, news of the administration is clearly disappointing and underlines the challenging economic conditions that still exist across the UK retail industry.”
It was announced in December that East Kilbride’s Toys R Us outlet would be one of four Scottish warehouse-style stores to be axed.
The shutters will be pulled down at the Mavor Avenue branch this Sunday.