PwC announces 63 redundancies in Rotherham and London after retailer went into administration

This article is more than 2 years old

This article is more than 2 years old

Maplin’s administrator has made more than 60 head office staff redundant as hopes of finding a buyer for the collapsed electronics chain fade.

The retailer, which has 2,300 employees, entered administration last week after talks with a potential buyer collapsed.

On Thursday, PricewaterhouseCoopers, the administrator, said 63 people were being let go at Maplin’s headquarters in London and Rotherham.

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PwC said all affected staff had been informed and would be paid up to and including their last day of employment. Toby Underwood, one of the joint administrators, said PwC was still seeking offers for Maplin.



“We still believe there is strong value in the company and we remain focused on doing all we can to preserve the business while we continue trying to achieve a sale,” he said.

Maplin’s 200 stores have continued to trade as normal, but PwC warned that unless a buyer came forward soon, it would begin closing them down.

“It is with real regret that we have made this decision [on jobs],” Underwood said. “Maplin is continuing to trade, but due to a lack of interest, we may be required to initiate a controlled closure programme.”

Maplin, which was owned by the private equity investor Rutland Partners, had been hunting for investors since last year, when credit insurers pulled cover from suppliers. Without insurance, companies tend to demand cash payment for stock upfront, rather than one to three months after delivery, creating a financial squeeze.

The loss of credit insurance was a factor in the demise of Toys R Us, which also failed last week after a fruitless search for a new backer.

The retailer, which has 3,200 staff, is being wound down by the restructuring company Moorfields and has launched a closing-down sale ahead of the first round of closures. The 100-store chain had been put up for sale by its bankrupt American parent company.

The wave of high-street chains going into administration comes as retailers’ traditional business models are threatened by the shift to online shopping, at a time when the costs of running physical stores are rising. Inflation and the uncertainty created by Brexit have also undermined consumer confidence.