Maplin Joins Toys R Us on the Brink
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Maplin, the electronics retailer has joined toy retailer Toys R Us on the brink of collapse, putting up to 5,500 jobs at risk. Toys R Us’ woes were revealed last year and are looking for buyers for a rescue deal.
Maplin, owned by Rutland Partners have also put their business up for sale. Talks with potential buyers are understood to have broken down, however.
The toy chain is facing an imminent deadline for a £15m VAT bill which it won’t be able to pay, without selling the business. The US owner filed for bankruptcy protection last September. The retailer managed to leap over a collapse in December, by agreeing to a rescue plan to restructure its operations. This includes the closure of the 26 stores in Spring.
The only route left for the company is to sell, which is beginning to look increasingly unlikely.
Maplin however, has been in talks with Edinburgh Woollen Mill, a clothing company that owns Peacocks, Country Casuals and a bunch of other retailers, according to Sky News. This comes after insurers cut credit cover due to Maplin’s falling profits.
Toys R Us blamed its money problems on ‘warehouse-style stores’. These stores opened in the 80s and 90s and are now simply ‘too big and expensive to run in the current retail environment’.
It doesn’t help that the average B&M store has a better toy selection.
Seriously, you can get a two pack with Superman and Batman from The Dark Knight Returns for £20 in the one next to the Toys R Us in Gateshead. Just saying.