MAPLIN

Background

Established in 1972 as a mail order supplier of electronic components, Maplin opened its first shop in 1975 and grew to over 210 stores by 2018. In its latter years, the business had struggled with high levels of indebtedness, growing costs and increasing losses. Following the withdrawal of credit insurance and the failure of a process to sell the business, Maplin entered administration in February 2018.

Hilco Capital was appointed by Maplin’s Administrators to operate a store closure programme and run the stock liquidation process, maximising recoveries to the administration estate.

Hilco Capital’s role

• Appointed by the Administrators to operate a store closure programme and run the stock liquidation process across the estate
• Managed supplier liaison, negotiating settlements and ensuring continuity of supply during the closure process
• Sourced and funded an additional £12m of augment stock at no financial risk to the administration estate
• Deployed 27 retail support specialists at store level to manage the closure process and handover of stores
• Designed, managed and executed in-store discounting strategies to maximise stock recoveries
• Provided systems, space planning, visual merchandising and marketing support

Results

• Supply of augment stock at speed resulted in an improved store offering and significantly improved recoveries for the administration estate
• Provision of augment stock also extended the trading period while the Administrators sought buyers for all or parts of the business
• 216 stores operated over a 12 week period and handed over to landlords on schedule
• Recoveries outperformed initial budget agreed with the company’s Administrators