Rutland's Maplin enters into administration

Kenny Wastell
28 February 2018

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Rutland Partners-backed consumer electronics retailer Maplin Electronics has entered into administration.

The business will continue to operate throughout the process, with the jobs of 2,335 staff and 217 stores at long-term risk.

In a statement, Maplin CEO Graham Harris said: "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."

It is understood Rutland had been in talks with Edinburgh Woollen Mill surrounding a potential sale, though those discussions have reportedly fallen through.

A spokesperson for PwC, which has been appointed as administrator, told Unquote that the strategy for the business was to retain all existing staff and keep all existing stores open, with a view to finding a buyer as opposed to entering into "wind-down mode". The spokesperson added that it was hopeful that private equity houses would be interested in acquiring the asset, in addition to other potential buyers.

A statement from PwC said Maplin had experienced a decline in performance owing to a slowdown in consumer spending combined with the post-Brexit-vote devaluation of sterling, which has led to increased costs for primarily US denominated products.

Previous funding
Maplin first received private equity backing in 2001, when Graphite Capital backed the management buyout of the company, purchasing a 67% stake.

Montagu then invested £244m to acquire the business in August 2004, which at the time represented 12.8x its EBITDA.

Rutland acquired Maplin for £85m from Montagu Private Equity in June 2014.

Company
Founded in 1972 as a mail order electronics components retailer, Maplin operates a number of bricks and mortar stores in addition to an online store. At the time of Rutland's investment, it operated 210 retail outlets generating revenues of £220m.

People
Maplin Electronics – Graham Harris (CEO).