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Maplin Enters Administration After Failed Takeover

Maplin Enters Administration

Another UK high-street retailer Maplin has practically bit the dust. In fairness, there were many reasons for that which I will get into, but following attempts to sale, the company was unable to secure a buyer.

Therefore, Maplin has sadly today officially entered administration.

Failed Purchase

In a report we did earlier this week, Maplin was desperate to attempt to find a purchaser after entering very difficult financial problems.

In a report via the BBC, however, several factors have made trading difficult. One such difficulty was the withdrawal of their credit insurance, this in itself is an insurance to cover the costs of bad debts. In addition to that though a general apathy and a weak pound has caused the retailer to call in the administrators.

The stores and employees

There is some relatively good news for the stores and their employees. Maplin has said that the 200 stores and circa 2,300 will for the moment remain open and by proxy keep the jobs secured. When a company enters administration though, usually a fire sale is just on the horizon.

The first step of this is usually the closure of non-profit making stores and even barely-profit earning stores.

The future of Maplin

Maplin is a great store to have a mooch around, but beyond that, I understand entirely why it has collapsed. Ultimately it didn’t really tick any box. For PC enthusiasts it didn’t stock enough items (and at the right price) to warrant walking in and for gadget lovers, it was all a bit messy.

Speaking of gadgets, these can be very popular and lucrative but generally fall under the bracket of compulsory purchases. General economics dictate that in difficult times, compulsory purchases are the first to go for shoppers.

I hate to say this as well, particularly with the current uncertainty, but I always found the staff to be more salespersons than tech enthusiasts. Only once in my local store did I meet someone who genuinely knew about PC building.

What do you think? Surprised at the administration? What is the future of Maplin? – Let us know in the comments!

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