The preferred bidder for high street retailer the Gadgetshop has withdrawn its interest in purchasing the business as a going concern leaving administrators PKF with no option but to close it in four weeks.
Bryan Jackson, a partner at PKF and joint administrator to the Gadgetshop said that it was with ‘regret’ that the preferred bidder and a subsequent bidder had withdrawn their interest in purchasing the business.
Jackson said that all the remaining branches, 55 employing 628 staff, would ‘eventually’ close over the next four weeks, while at the same time operating closing down sales to ‘maximise the return’ to creditors.
‘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’, said Jackson.
Jackson added that PKF would 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.’
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