Ebuyer, the UK’s second-largest PC retailer, is facing administration following financial challenges. The company, which has been operating for 26 years, recently received a winding-up petition from its landlord, Urban Logistics Acquisitions 6 Ltd.
The retailer, known for selling PCs, components, and accessories, reported a turnover of £175 million in 2022, employing over 200 people. However, by 2023, its turnover had dropped to £136.5 million, with the company incurring operating losses of £1.8 million. In response, ebuyer reduced its workforce by around 50 employees as part of cost-cutting measures aimed at improving profitability.
The company’s latest financial statement, covering the year ending December 2023, pointed to a broader downturn in the electrical products and components market. The statement revealed a 22% decrease in year-on-year turnover, prompting the business to implement efficiency initiatives to address the financial strain.
Ebuyer’s acquisition in April 2023 by UK investors Mark Reed and Rich Marsden has yet to reverse the company’s fortunes. The company now faces uncertainty as it navigates these difficult trading conditions.
