Merchandise firm is rebooted as three shops close
POPULAR Newcastle merchandise retailer Be More Geek has closed three shops after spiralling costs led its founder to liquidate the original business.
The TV, movie and anime merchandise retailer was first launched on Tyneside in 2018 by James Gee, following the collapse of Grainger Games.
He had been among the hundreds of employees who were made redundant when the computer games business folded, starting on day one at its Grainger Market stall and eventually running the firm’s merchandise offshoot until its collapse.
After registering the Be More Geek company name, Mr Gee brought the company to the high street in October 2018, opening a Newcastle city centre store.
By the start of this year the firm had six UK shops, including five in the North East in Eldon Square Newcastle, Gateshead Metrocentre, Sunderland city centre, Middlesbrough and The Galleries in Washington.
However, its push into Manchester’s Arndale Centre proved to be a costly move. As a result, the shutters are now coming down on stores in Manchester, Middlesbrough and Washington, with the loss of seven jobs.
Mr Gee turned to business restructuring specialists at FRP Advisory in Gosforth, Newcastle, who are now liquidating Be More Geek Ltd. He has, however, managed to keep three North East shops open, saving 15 jobs, after buying key assets of the company back in a restructure deal.
He told how he was feeling positive about trading at the start of the year – but that a chain of events, starting with delays in opening the North West shop, forced his hand.
Mr Gee said: “We were optimistic about 2023 but encountered spiraling costs from the expansion into Manchester where we were met with an unprecedented amount of red tape and delays.
Costs were driven up further due to the energy crisis and with the writers and actors strikes causing delays to key film and TV product licences alongside customer spend being impacted by the cost of living crisis, the business quickly entered a difficult period in Q4.
“In January, after an underwhelming Christmas period, every effort was made to save the business as a whole, however, the company entered into a liquidation process with three of the stores in Middlesbrough, Washington Galleries and Manchester Arndale closing.
We were able to rescue part of the business through a new company (BMG NE Ltd) where we have been able to retain our stores in Newcastle, Metrocentre and Sunderland and offer positions to 15 full-time employees.
“Whilst this has been a difficult and turbulent time for everyone involved in the business, we are optimistic that the new business going forward can be profitable as we return back to our roots as a local North East-focused business.”
Documents filed at Companies House showed the company had debts of £628,097 ahead of appointing liquidators. The list of 45 creditors includes HMRC, which is owed £106,893.