Empire Direct goes into administration

Shops shut as trading stops

Empire Direct goes into administration

20 January 2009 13:16 GMT / By Amy-Mae Elliott

Empire Direct has gone into administration, as the UK high street shows further evidence of decline.

The chain, of 14 branches and a big online store, will see the loss of 350 jobs from the 25-year-old Yorkshire-based company.

Empire Direct is said to have been hit with poor Christmas sales as spending was "reined in" in the UK, as well as the loss of credit insurance which gives suppliers protection if the retailer defaults on debt.

"Empire Direct has been severely affected by the economic downturn and experienced a significant reduction in sales from the middle of last year", said administrator Mark Firmin from KPMG.

"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".

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Comments

  • I'm really gutted for them (but also for all of us), it looks as though the "High Street" is slowly becoming a monopoly of the few companies who have deep enough pockets to see out the recession.

    Woolworths, Zavvi and Empire going into administration means that Argos, Game and DSG (Dixons, Curry's and PCWorld) will all breathe a little easier, but it can't be good for us as we'll end up paying higher prices due to the reduction in competition.
    Posted by John B., UK
  • I'm really gutted too, I made an online purchase just last Thursday and don't know if I'll ever receive anything back! The scary thing is that this is the second time this has happened to me via online sales and has made me much more cautious about future purchases...surely not good for retail confidence in the long run. How safe are their business accounts, we wonder?

    What also worries me is the monopoly that Tesco and the others will gain. Yes their goods are cheap but for how much longer when all the competition is annihilated?

    RIP smaller businesses.....
    Posted by Paul W, UK
  • Paul, as long as you paid by credit card and the purchase was more than £100 you're covered by the card company's insurance - contact your credit card company.
    Posted by John B., UK
  • A sad day indeed,having purchased hi-fi in the past from them in the old clearatone days, they were a local Bolton company who specialised in hi-fi not washing machines and the like, before becoming empiredirect.Sympathy to all the staff who have been very helpful. Posted by David A Richmond , GB
  • empire direct knew in october they was in shit. but i'll speak from the lads on the shop n warehouse floor and for my driver mates it came as a shook as we got told not to worry about anything from the owners son posh...but they left staff ie warehouse n drivers panniless as last months wages and overtime is owed n have to TRY n cliam it back from the goverment.....yours a reather unhappy 7.5ton truck driver of empiredirect Posted by nik smith, bradford
  • I placed an order with www.empiredirect.co.uk for Toshiba LCD TV 2 weeks ago and I havent recived it. They have taken the money off my card but my credit card company not to worry about it because they will give me my money back. I placed an order for the same TV with www.digitaldirect.co.uk on Wednesday this week and it arrived with me today. They even gave me a better deal, so something good came out of it Posted by Andrew Stott, UK
  • does this mean empire comercial are belly up aswell? Have a faulty plasma they supplied with me months ago Posted by Chris, UK
  • my hussain i buy tv from empiredirect.i paid cash £699.98.they said we will deliver next week .by next i went to see them they closed there store.also they did not give my money.my name hussain i lives in derby Posted by mr m hussain, uk

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