One of the UK’s biggest electronics chain is attempting to find a buyer to save itself from falling into administration.
Maplin, which is owned by Rutland Partners, is in talks with several potential buyers and is hoping for a solvent sale – protecting its 2,500 employees.
“We are in advanced talks with a number of parties and expect to be in a position to announce a solvent sale of the business within days,” said a spokesperson from the chain.
“Once secured, this will stabilise the business to the benefit of all stakeholders and provide Maplin with the financial firepower to deliver its 2020 multichannel strategy focused on smart tech.”
Sky News has reported several potential buyers for the electronics chain. They included Edinburgh Woollen Mill, a clothing company that owns Peacocks and Country Casuals among other brands.
Maplin has more than 200 stores in the UK. The chain said that if a solvent sale cannot be achieved soon, a pre-pack sale will be considered.
The group recorded a pre-tax loss of £3.9 million in 2016-17. They said it was a “transformational and challenging year” for the business.
Oliver Meakin, the current chief executive, blamed Brexit for the declining business.
“Pretty much everything we buy is dollar-denominated, so our costs have gone up by 15 percent … When your costs go up by that margin, you cannot shoulder that as a retailer,” he said back in January.
Maplin is the most recent business to face problems. Toys R Us UK and Byron Burger have declared financial problems this month.
“Today marks the dawn of a new era at Toys R Us, where we expect that the financial constraints that have held us back will be addressed in a lasting and effective way,” said Dave Brandon, the chairman and chief executive of Toys R Us UK.