Empire Direct has announced that it will be going into administration today, by closing all 14 of its UK stores. It’s yet another reputable retailer who has shocked the UK and has said that it’s seen a significant drop in sales since the middle of last year.
For those customers that are awaiting products to be delivered, you will be contacted in the next few weeks. Mark Firmin, joint administrator and KPMG restructuring partner via the BBC 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.”
In the last few months we’ve seen other reputable retailers like Zavvi and Woolworths announce their withdrawal from the high street. This now raises how many more stores will be affected and won’t make it to the end of the year. Speculation that DSGi the owners of Dixons, PC World and Currys might not make it are also spreading as its facing the same challenges as Empire Direct. According to sources, Euler (DSGis’ Insurance company) they are pre-empting bad news and have cut the retailers credit insurance. If we hear news of DSGI’s closure it will add one big blow to UK confidence and will probably see a further dip in tech sales and rapid increase in other stores closing.
Lets hope things improve by the end of the year as it would be a real shame to see any more of our most trusted retailers vanish.
2 thoughts on “Another electrical retailer hits the rocks – Empire direct goes into administration”
I ordered a Toshiba TV from Empire Direct 2 weeks a go and I havent received it. I spoke to my credit card company on Tuesday and they told me that I will get my money back. I have since reorderd the TV from http://www.digitaldirect.co.uk and they delivered the same TV to me on Friday. Despite being annoyed about the hastle of having to go and order elsewhere I am disappointed that Empire Direct have gone bust because I have been buying from them for about 5 years.
I suppose the positive way at looking at it from your point of view is that you got your money back. There are still a few people I know still waiting to hear about what will happen to their orders., I suppose this emphasises the benefits of using a credit card to make online purchases.
Empire Direct were great though, great service and huge selection of products. They were actually very charitable too and sponsored schools and events in local communities, a real shame. Good news is however the Americal giant Best Buy will be coming to town soon.