Electronics store Maplin has gone into administration after rescue talks with potential buyers have failed to secure a sale. This follows the news that Toys R Us has also gone into administration.
Maplin, which employs more than 2,500 staff at 200 stores will continue to trade as the administration process gets underway. The store will be working with administrators PwC ‘to achieve the best possible outcome for all of our colleagues and stakeholders’, boss Graham Harris said.
Why did Maplin go bust?
The company’s boss Graham Harris said in a statement that the company has been struggling for the past few months. Having faced problems caused by the drop in value of the pound since Brexit, weak consumer confidence and the withdrawal of credit insurance (which allows shops to buy stock on credit) Maplin has been forced into administration.
What happens next?
The administrator, PwC, will take over running of the company, but the shops will stay open for now. Closures may happen depending on what the administrator decides to do, but we can only speculate. Watch this space as we’ll be updating this page regularly.
What are your rights when a company goes into administration?
During this time it will be business as usual, but you may have some issues as things progress.
For returns and exchanges your right will depends on what the administrator decides to do, but for faulty items you may not be able to get your money back as your right to return is invalid. If you paid for goods with your credit card, you’re protected by section 75 of the Consumer Credit Act, which may be the best way to get your money back. If not, you’ll be better off writing to the administrator to complain.
Find out more about your shopping rights on our consumer rights pages.