Gadget Shop to close
Bidders walk away from retail chain
The Gadget Shop chain is to close after two potential bidders failed to make a formal offer for the business.
Bryan Jackson of accountants PKF, appointed administrator to the 65-store Gadget Shop last month, said that both the preferred bidder and a subsequent bidder had withdrawn interest in buying the business as a going concern.
The closure of the 45 branches still trading will mean the loss of a further 550 jobs, bringing the total to 742. Jackson said the branches will close over the next four or so weeks, with closing down sales to maximise the return to creditors.
He said: “It is disappointing that in the end a suitable offer did not materialise. The potential buyers we spoke to all expressed concern that they could not clearly estimate how long it would take them to source, purchase and make available suitable stock.
“Furthermore this is a quiet time of year for this business sector, a sector that is not performing well over all, as evidenced by Gadget’s biggest competitor closing its doors earlier this year.” The smaller Must Have It chain closed in January.
Jackson added: “PKF will now seek to maximise the income from the existing assets to ensure the maximum amount is available to creditors. We will aim to sell individual or groups of stores, the company name and its successful website, as well as staging a closing down sale in remaining branches.”
Gadget Shop ran into difficulties after its shareholders failed to agree on a strategy for its future. Chris Gorman, executive chairman of Gadget Shop, along with fellow shareholders Tom Hunter and chief executive and founder Jonathan Elvidge are understood to have been negotiating a sale to computer games retailer Game. They were opposed by two fellow shareholders, Freeserve founder Peter Wilkinson and City trader John Wood, who between them owned 40 per cent of the business.
