Bargain shop billed as a Poundshop rival collapses after 'sudden crisis' with 24 UK stores closing

MaxiDeals Group abruptly shut all its stores and went into voluntary liquidation last week, Companies House documents show.

The discount retailer was first launched in 2020 and deemed a rival to Poundshop and Poundstretcher.

Across 24 stores, MaxiDeals sold food and drink, household, cleaning and health and beauty products, as well as general merchandise.

Companies House filings for 21 February showed the group appointed a voluntary liquidator on 18 February, having filed a winding up application on the same date.

The discount retailer opened its first store in Hinckley, Leicestershire, before opening shops in areas such as Erdington, Stourbridge, Melton Mowbray, Chesterfield, Mansfield, Dudley and Newark.

The voluntary liquidation announcement emerged after one of the retailer's shops on Mill Lane, in Bromsgrove, abruptly shut last month.

According to Companies House documents, wholesaler and importer firm, J&E Group Ltd., held a majority stake in MaxiDeals Group. Voluntary liquidation can only be done via a company's shareholders.

The process of voluntary liquidation is often started when a business is or is becoming insolvent, cannot pay its creditors the debts they owe, with those in charge taking control of the situation before creditors do.

Companies House filings also show the group had two active directors, Paul Mathers, and Dihong Zhang.

Mathers, who previously worked as a director of operations at Poundstretcher, told The Grocer that MaxiDeals had stopped trading 'very suddenly' amid a 'really tough trading environment on the high street, accompanied with rising costs.'

This is Money contacted the appointed voluntary liquidator, Eric Walls at KSA Group, for comment.

On his LinkedIn profile, Mathers said: 'MaxiDeals was a new startup discount retail business backed by investors, where I was given the responsibility of opening its retail locations across various parts of the UK.

'We opened these stores during very challenging times with the Covid outbreak just starting, however we did manage to get to 24 stores.'

Back in 2021, the group said it seeking larger out of town units covering up to 15,000sq ft, and had hired a property manager to assist with its expansion.

MaxiDeals was originally called MaxiSaver but changed its name in 2022.

A string of retailers have announced store closures and job cuts in the last few years amid rising costs and changing shopper habits.

More than 13,000 high street shops shut down last year, a 28 percent increase from 2023, according to the Centre for Retail Research.

Experts are predicting a higher number of closures this year due to tax hikes and wages hikes announced in the Budget by Rachel Reeves in October.

The retail sector has warned of a £7billion increase to its costs this year alone.

A number of discounter retailers have been struggling. This week, B&M issued a profit warning and announced its chief executive's departure, with Deutsche Bank slashing its share price target.

In December, Pepco, the owner of Poundland, reported a £548million loss for the year to 30 September.

Wilko closed all 400 of its stores in October 2023, but has since started reopening some under new ownership, with plans for 300 more locations this year.