Gadget Shop to close, 500 jobs threatened

THE Gadget Shop is to close after the preferred bidder for the company withdrew its offer over High Street sales fears.

Administrator PKF said the retailer's remaining 45 stores would close down within the next four weeks, with the expected loss of 552 jobs.

Twenty stores have already been closed after the company called in administrators in March following a boardroom dispute.

Computer retailer Game Group was the company reportedly behind the offer but it is refusing to comment on the speculation.

Joint administrator Bryan Jackson 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.'

Jackson added that the general downturn in the retailing sector was also behind the bidder's decision to pull out. A spokesman could not confirm whether customers that ordered goods via the company's website would receive their products.

The company ran into trouble after a split in the boardroom over its future. Certain directors wanted to sell the business while others were opposed to the move.

Executive chairman Chris Gorman and retail entrepreneur Tom Hunter owned 25% apiece and Jonathan Elvidge, founder and chief executive, 10% of Gadget Shop. They clashed with Freeserve founder Peter Wilkinson and City trader John Wood, who owned 40% of the operation, over their vision for the group.

The remaining stores will now hold final sales to sell off existing stock. Jackson said: '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.'

The company's collapse is the second High Street retailer to hit difficulty this week. On Tuesday, Blackpool-based discount clothing store Eisenegger called in administrators after being hit by the slowdown in consumer spending.