A DISCOUNT retailer is on the brink of collapse amid a string of sudden UK store closures.
MaxiDeals, a bargain chain that rivalled Poundstretcher, announced they have gone into liquidation.
Paul Mathers, the chain’s managing director from launch, told The Grocer MaxiDeals had ceased trading “very suddenly”.
He blamed a “really tough trading environment on the high street, accompanied with rising costs”.
“MaxiDeals was a new startup discount retail business backed by investors, where I was given the responsibility of opening its retail locations across various parts of the UK,” he wrote in a statement online.
“We opened these stores during very challenging times with the Covid outbreak just starting, however we did manage to get to 24 stores.”
Companies House documents show MaxiDeals went into voluntary liquidation on February 18.
Voluntary liquidation can only be done by a company’s shareholders.
While liquidation is when a registered business closes and its assets are distributed to any claimants.
Liquidation is a term used interchangeably with administration, however, the latter involves appointing a licensed insolvency practitioner.
MaxiDeals was born during the pandemic and was loved by shoppers for bargains on food to cleaning products.
It was originally named MaxiSaver and rolled out its first store in Hinckley, Leicestershire, in August 2020.
Owned by J&E Group, the chain went on to open 24 sites across the UK.
The liquidation announcement comes after a Maxi Deals on Mill Lane, in Bromsgrove, quickly closed last month.
[authenticated-scripts src=”%3Cscript%20class%3D%22palin-poll%22%20src%3D%22https%3A%2F%2Fwww.thesun.co.uk%2Fpollingwidgets%2Fv3%2Fwidget.js%3Fquestion_id%3D107661%26game%3Dpolling%22%3E%3C%2Fscript%3E” type=”embedded” width=”100″ /]Shoppers spotted signs in store windows on January 27 which revealed the store would be having a 20% off closing down sale.
Between 12 to 15 staff were affected by the closure as well as the local community.
The store was less than eight months old opening early last year after Iceland closed its Mill Lane store.
Elsewhere, a store in Eastwood, Nottinghamshire, rolled the shutters down shortly after putting up a warning notice.
The owners shut their branch on Nottingham Road leaving a note behind thanking loyal customers.
Shoppers spotted the closed down store on December 31.
It comes as several other retailers have been struggling to get by over the past few years.
Energy costs have risen and more shoppers than ever are choosing to order online rather than head into stores.
This has left some companies grappling with budgets and having no choice but to close stores to cut costs.
Troubled fashion brand Superdry said it is looking at various “cost-saving options” after reports it is considering a major restructuring which could include store closures and job cuts.
Homebase closed a store last year leaving it with just 93 stores remaining since it was taken over by Hilco Capital in 2018.
Competitor Poundstretcher closed multiple stores last year but also opened new stores in closed Wilko stores.
And, Boots revealed it would be closing 300 stores over the next year as part of plans to evolve its brand.