PwC has been appointed as the administrators of UK electrical goods retailer Maplin following failed attempts to be rescued by potential buyers.
The retailer’s business had suffered from a post-Brexit currency devaluation, withdrawal of credit insurance, and a weak consumer environment, CEO Graham Harris explained. Yet analysts highlighted the company’s debt burden including a £63m (USD $86.8m) loan from Rutland Partners for which it paid £12m of interest last year. Maplin will remain open and continue to trade while staff will continue to be paid during the administration.
PwC partner and one of the appointed administrators Zelf Hussain said: “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 will be to engage with parties who may be interested in acquiring all or part of the company.”
Like Maplin, retailer Toys R Us has also gone into administration this week after hunting for a buyer for several weeks, which will be managed by UK insolvency practitioners, Moorfields. Toys R Us could not compete with online retailers and has also filed for bankruptcy protection in the US and Canada last year after amassing $5bn of debt.