Maplin - one of the UK’s biggest electronics retailers - has collapsed, putting 2,500 jobs at risk.
The company, which has more than 200 stores, went into administration this morning after talks with potential buyers fell through.
Maplin, which was founded in 1972, will continue to trade during the administration process, the company’s 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,” Harris added.
The company head blamed the fall of the pound post-Brexit, along with a “weak consumer environment” and the withdrawal of credit insurance for the collapse, saying it was “impossible” to raise the necessary capital to deal with current market conditions.
The news comes just hours after it was revealed that Toys R Us has also fallen into administration, putting 3,200 jobs at risk.
Rebecca Long-Bailey, Labour’s Shadow Business Secretary, commenting on Toys R Us and Maplin going into administration, said:
“It’s devastating that over 5,500 High Street jobs risk being lost. This latest shock in the retail sector continues a worrying trend for our shopping streets and centres.
“The government must urgently meet with both the unions and the companies to ensure that these jobs are safeguarded.
“Workers are suffering stress and anxiety not knowing what the future holds for them. In the event of job losses, the government must act quickly to ensure all workers receive swift redundancy payments and are properly supported.
“The government must also urgently address problems across the retail sector.”