Maplin is rushing to find new capital to save it from falling into administration, with talks with a potential buyer stalling.
According to Sky News, the electronics retailer is locked in talks with its potential buyer Edinburgh Woollen Mill (EWM) – the high street empire that includes Jaeger and Dorothy Perkins owned by Philip Day to secure a rescue deal.
The electronics retailer, which employs about 2,500 people and trades from hundreds of shops, is targeting an injection of new capital by the end of the month amid what sources close to it described as “cash flow issues”.
It is understood that EWM is keen for Maplin’s current owner Rutland Partners to retain a stake in the company and “must be willing to play a role in the future of the company”.
This has led to the talks to be progressing more slowly than either side would like with the deadline of the end of February approaching.
Maplin is said to be seeking tens of millions of pounds to keep it afloat, with a number of substantial liabilities falling due in the coming days.
One person close to Rutland indicated that the fund remained “open-minded” about participating in a deal, which could be structured as a pre-pack administration.
Maplin and EWM have both yet to comment on the progress of their talks.