Maplin has gone into administration – 2,500 jobs at risk
Maplin has gone into administration – 2,500 jobs at risk
The company’s Chief Executive, Graham Harris made the following comments to the press, confirming that the business had gone into administration and that Maplin’s 217 stores will remain open for business during the administration process. PwC will be handling Maplin’s administrative proceedings.
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,
In recent months Maplin has been looking for a buyer for the retail chain, though sadly these attempts have failed. Regardless, Graham Harris believes that “Maplin has a place on the High Street” and that their stores “meets a customer need that is not supported elsewhere”.
Market analysts have blamed Maplin’s failure on the “Amazon effect”, where consumers are becoming increasingly reliant on online retailers for consumer electronics.
Administration proceedings in the UK are designed to salvage failing companies, where administrators (PwC in this case) will create a plan that will fulfil the company’s financial obligations and do whatever is possible to create a more sustainable business.
In Maplin’s case, this will likely involve a significant downsizing, with fewer retail stores and a lot less staff, selling off whatever assets they can to raise any necessary capital.
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