2,500 jobs at risk as Maplin enters administration

Maplin Electronics Limited, the Rotherham-headquartered electrical retailer, has entered into administration.

Toby Underwood, Zelf Hussain and Ian Green of PwC have been appointed joint administrators of the retailer.

Maplin employs around 2,500 peopl​e and has an annual turnover of £235.8m.

Operating 217 217 stores across the UK and Ireland, the retailer has head offices in London and Rotherham.

Maplin experienced a decline in performance as a result of the softening of consumer demand in what has been a challenging retail environment and higher-priced products.

In recent weeks, management did pursue a solvent sale of the business but this could not be reached.

Given the cash position of the company, the directors resolved to put Maplin into administration.

The joint administrators will continue to trade the business as normal whilst discussions take place with interested parties in an attempt to find a buyer.

Toby Underwood, 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.”