(19 January 2009)

Madan Showan's electrical retailing business Empire Direct has today called in administrators, appointing Mark Firmin and Richard Fleming of KPMG. Empire Direct, which is based in Leeds, had been established for 25 years and marketed itself as the UK's largest independent retailer of electrical goods with a turnover of £150m. A significant proportion of its business was online though it also had 14 retail outlets around the UK. The business was unable to continue trading due to poor sales, a high £10.9 million overdraft and lack of credit insurance, so all the outlets have been closed and the administrators have made 158 of the 350 employees redundant.

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

"We are working hard with the remaining employees to establish a list of customers with outstanding orders and much of our immediate effort will be focused on communicating with them. Within the first few weeks of the administration, we are aiming to contact all customers who have paid for goods which they have not received. Customers can contact us using the dedicated email address or call on 0871 472 9000."

The Empire Direct business was half owned by Bradford-based Madan Showan. Punjab-born Showan, who arrived in Britain aged 12 without a word of English, cut his teeth in business by running an innovative home delivery service for recently-arrived immigrants in Bradford. He went on to set-up Empire Direct with reported a turnover of £100million in 2005, the same year in which he received the Northern Asian Jewel Award for Business and Commerce.