Maplin enters administration after failing to find buyer
LONG-STANDING ELECTRONICS retailer Maplin has gone into administration after the ailing business failed to find a buyer.
Blaming the fall in the pound’s value after the Brexit vote, along with the withdrawal of credit insurance and poor customer confidence, Maplin was on the hunt for a buyer to save it.
“This necessitated an intensive search for new capital that in current market conditions has proved impossible to raise. These macro factors have been the principal challenge, not the Maplin brand or its market differentiation,” said Graham Harris, Maplin’s chief executive.
“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.”
In March, Maplin called in PwC to take care of the administration process, which put more than 200 stores and 2,300 staff at risk. At the time of writing, PwC had already cut 55 staff from Maplin’s workforce.
Maplin has struggled to compete with online retailers such as Amazon, which offer electronics and PC parts at lower prices and rapid delivery, arguably trumping in-store customer service.
While Maplin’s turnover sits at £235.8m, it’s been on a downward spiral. PwC is keen to find a buyer for the company, but it seems no company or investor has been forthcoming since previous buyout talks collapsed.