Maplin, Toys R Us UK Enter Into Administration
The two major high street chains Maplin and Toys R Us UK went into administration today, putting thousands of jobs at risk in Ireland and the UK.
The British electrical retailer Maplin announced today it was entering into administration after failing to find a buyer for its business, the Financial Times reported.
The chain has over 200 stores in Britain and Ireland, with six outlets in the Republic, including three in Dublin, one in Cork, Limerick and Galway.
“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,” Maplin CEO, Graham Harris, said. "During this process Maplin will continue to trade and remains open for business.”
The devaluation of sterling following the Brexit referendum was a major factor in the company’s troubles, Harris said.
“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,” Harris continued.
“This necessitated an intensive search for new capital that in current market conditions has proved impossible to raise. These macro factors have been the principal challenge not the Maplin brand or its market differentiation.”
“We believe passionately that Maplin has a place on the high street, and that our trust, credibility and expertise meets a customer need that is not supported elsewhere,” he concluded.
Toys R Us
Earlier in the day, the American toy giant Toys R Us’s UK business fell pray to the same fate, just two months after winning creditor backing for a wide ranging restructuring plan to mitigate its overwhelming rent bill.
Insolvency specialists at Moorfields have started the process of closing down the company's UK operations which currently employs some 3,000 people and has an estimated funding shortfall of at least €27 million in its pension scheme.
Toys R Us operates four stores in Northern Ireland, two in Belfast, one in Derry and one in Lisburn.
The company had been struggling to raise cash to pay off a tax liability that was due this week, but the plan collapsed after support from several private equity funds and restructuring specialists fell through.
© 2018 - Checkout Magazine by Kevin Duggan