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MAPLIN BUST

Maplin store closures – why is the company going into administration and which shops are closing?

British electronics retailer Maplins collapsed on the same day as Toys R Us and put thousands of jobs at risk

Maplin has more than 200 stores across the UK

ELECTRONICS giant Maplin has gone bust — putting thousands of jobs at risk.

But why has the firm gone into administration and which shops are closing? Here's all you need to know.

 Maplin has more than 200 stores across the UK
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Maplin has more than 200 stores across the UKCredit: Alamy

Why is Maplin going into administration?

Maplin announced on 28 February 2018 that it was going into administration.

The company - which struggled to compete against rivals and online retailers - is set to close its stores across the country unless a last-minute buyer is found.

Maplin, has more than 200 stores across the UK and 2,500 staff.

It had been racing to find a buyer for the business over the week before its collapse.

But the capital needed to prop up the business had proved "impossible to raise", the company said.

The 40-year-old firm said it had been hit by the impact of the Brexit-hit pound, a "weak consumer environment" and the withdrawal of credit insurance.

Which Maplin shops are closing?

It is so far unclear in what order the Maplin store closures will take place.

Chief executive Graham Harris said in a statement on the day of the announcement "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.

"During this process Maplin will continue to trade and remains open for business.

"The business has worked hard over recent months to mitigate a combination of impacts from sterling devaluation post Brexit, a weak consumer environment and the withdrawal of credit insurance.

"This necessitated an intensive search for new capital that in current market conditions has proved impossible to raise."

What is the history of Maplin Electronics?

Maplin was as established in Rayleigh, Essex in 1972 as a small mail order business by Roger and Sandra Allen and Doug Simmons.

It took off after the trio gave away free catalogues to callers and offered good products in the first-class post.

The first store opened in Westcliff-on-Sea, soon followed by a second in Hammersmith, London.

As of 2017 Maplin had 217 stores across the UK.

In December 1994, the private equity firm Saltire plc acquired Maplin Electronics from its founders.

The company would pass through several hands before ending in the ownership of Rutland Partners.


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