Maplin goes into Administration
Toby Underwood, Ian Green and Zelf Hussain of PwC have been appointed at Maplin Electronics Limited as Joint administrators. The company has collapsed after facing consecutive business failures including the failure of its newly launched product Toys R Us.
The administrators shall continue to manage the business through the normal course of its business however attempts will be made to the sell the business to potential investors.
Maplin has staff members totaling to 2,335 and has head offices located in London and Rotherham. The company has around 217 stores across Ireland and UK and has annual revenue of £235.8 m. The company had been facing operating difficulties due to decrease in customer demand and the competitive business environment. The management attempted to make a solvent sale of the business but the transaction could not be concluded. The weak liquidity position of the company caused the directors of the company to put the company in administration.
PwC partner and Joint administrator, Zelf Hussain said that the challenging market conditions in the retail sector of the UK are pretty much well documented and known to everyone. Like a number of other retailers in the UK, Maplin has also been impacted significantly due to decrease in net spending of the consumers and imports that are comparatively more expensive imports as the pound has weakened in recent times.
Hussain told that employees had been paid their wages for the month of February and will continue to get paid against their future work while the company is still in administration. He further said that their main focus right now is to find a potential suitor who will be willing to acquire the entire company or just a part of it.