Hub Retail, the discount variety retailer launched by Poundland’s co-founder David Dodd, has gone into administration, saying it has been “unable to create a viable business in the current climate”.
Hub was launched little more than a year ago, with Dodd promising that eight stores would open in the first year.
In the event, though, the chain extended to just four outlets, in Lichfield, Stafford, Telford and Manchester. All have now closed with the loss of 57 jobs, and liquidators are being appointed to the business.
Hub initially aimed to combine affordable prices with middle-market quality but, unable to achieve sufficient sales in that sector, it repositioned itself in the value market. However, it found that it could not then compete with the buying power of the established discount chains, of which, ironically, his hugely-successful former business Poundland is one.
Hub’s offer included kitchenware, electrical products and other homewares alongside categories such as hardware, garden, sport, stationery, toys and confectionery.
The company aspired to serve 12,000 customers a week in each store, and to build the chain to 30 by the end of 2012. Dodd’s ultimate ambition was to have 200 Hub shops nationwide.
Dodd commented: “We have fought to succeed, and have not accepted failure without a fight, but I have had to accept that despite the best endeavours of all our hardworking staff, we have been unable to create a viable and sustainable business in the current climate. Having taken independent professional advice, we have reached the difficult decision that liquidation is in the best interests of all involved.”