Empire Direct calls in administrators

THE UK’s biggest independent electrical goods retailer, Yorkshire-based Empire Direct, has called in administrators who have closed all 14 of its retail outlets and made 158 staff redundant.

The £150m turnover Leeds firm, which was founded 25 years ago by entrepreneur Madan Showan, has suffered falling sales over the last six months and was hit by the withdrawal of cover by credit insurers.

Mark Firmin and Richard Fleming from KPMG have been appointed administrators to Empire Direct and its subsidiary company Empire Property (UK), at the request of the directors.

The administrators said that the business was unable to continue trading and have closed all 14 of its retail stores including Roundhay Road in Leeds; Canal Road,

Bradford; and Great Northern Retail Park in Huddersfield and made 158 of the 350 employees redundant.

Much of Empire Direct’s sales were through its website and the remaining employees are working to fulfill outstanding orders to customers.

Mark Firmin, joint administrator, and KPMG restructuring partner said: “Empire Direct has been severely affected by the economic downturn and experienced a significant reduction in sales from the middle of last year.  In addition, the business really suffered when credit insurers withdrew cover in October.  Low stock levels and operating losses mean the business cannot continue to trade in administration.

“We are working hard with the remaining employees to establish a list of customers with outstanding orders and much of our immediate effort will be focused on communicating with them. Within the first few weeks of the administration, we are aiming to contact all customers who have paid for goods which they have not received.  Customers can contact us using the dedicated email address which can be accessed via  www.empiredirect.co.uk.  Alternatively, customers can log their details with the call centre on 0871 472 9000.”