350 Jobs Go As Empire Direct Fails

More bad news for the High Street businesses as Empire Direct falls into ruin. The major electrical retailer is now in full administration. 350 jobs were lost as a result of its failure.

Empire Direct previously had a total of 14 branches alongside a very powerful online store. Poor Christmas performance greatly harmed their earnings though, as general purchases on washing machines and televisions fell sharply.

KPMG administrators are also citing the company's lost credit insurance as another key factor. This insurance reimburses suppliers in the event that the retailer would default on their debt.

Empire Direct had a strong turnover of £152 million last year, but their bank overdrafts managed to get to £10.9 million. They warned about their extended overdraft early last year. This problem seems to have caught up to them. Their stores and their website are now completely closed under the administration.

There is a silver lining for the sector thouugh, as Kesa Electricals, Comet's parent company, have announced that their interim trading statement is better than they'd expected. Like-for-like sales are still down 5.5%. The worst estimates had them down by 8.8%, so it's a bit of a happy note.

Next news article: Burberry Sheds 290 UK Jobs