Gadget Shop 'to call in adminstrators'

[Logic]

The Gadget Shop, one of the best-known names on the high street, is to be placed in administration after a boardroom bust-up involving the retailer’s largest shareholders. Talks to sell the business, which employs more than 700 people in 65 stores, collapsed after Peter Wilkinson, founder of Freeserve, and John Wood, the colourful and aggressive City trader, refused to back a rescue plan that had been put together by executive chairman Chris Gorman. PKF, the accountant, is expected to be appointed administrator as early as tomorrow. The company has debts of only a few million pounds and despite poor Christmas trading could attract offers from rival retailers and private-equity bidders.

[Logic]

65-store chain to appoint administrators

The Gadget Shop is hoping for a buyer to step in after confirming reports that it is to appoint administrators.

A plan to save the 65-store chain has failed after shareholders who own 40 per cent of the firm rejected a rescue plan put together by executive chairman Chris Gorman. Accountants PKF are expected to be appointed on Monday.

The Gadget Shop employs 700 staff and is understood to have debts of several mlllion pounds. A spokesman told the BBC: "It is extremely regrettable that The Gadget Shop has to be placed into administration by Tuesday, adding that Gorman's priority is "for the staff and he will be working hard with the administrator to find a buyer."

Gorman is said to have had the support of Scottish retail entrepreneur Tom Hunter. The pair have a combined shareholding of 50 per cent with Gadget Shop founder Jonathan Elvidge holding 10 per cent.

The Sunday Times reported that Freeserve founder Peter Wilkinson and City trader John Wood, who own the remaining 40 per cent, opposed Gorman's plans.

[nick]

Could be some bargains to be had there if Mr Gorman can't find a buyer.

[bunny]

i used to love the gadget shop, but the one in cardiff in the last couple of months has gone to pot.....now i know why.