The PC and gaming products seller is one of East Yorkshire’s key employers
One of East Yorkshire’s largest independent retailers faces the threat of being wound up, it has emerged. Ebuyer, which has employed as many as 200 people directly in recent years, has been issued with a winding up petition by its landlord – property investment company Urban Logistics Acquisitions 6 Limited.
Details of why the winding up petition has been issued have not been made public. The action follows a challenging period for Ebuyer, which shed 50 jobs in 2023 amid a fall in turnover from £174.2m to £136.5m and operating losses of £1.8m.
The firm established itself as one of the country’s top online retailers of products such as PCs, laptops and accessories. It was launched in 1999 and became part of the business empire of billionaire Malcolm Healey, who was originally from Hull and whose brother Eddie was behind development of the Meadowhall shopping centre.
It became part of the Healey’s £1bn turnover West Retail Group business, alongside Wren Kitchens, which is also based near Howden. Ebuyer was sold to Realtime Holdings in 2023 – then owned by Cambridge-based investor Mark Reed and industry veteran Rich Marsden, in a £26m deal.
At the time, Mr Reed said Ebuyer had “huge growth potential” and outlined plans to expand into the European Union market and develop its PC and gaming product lines. But most current accounts available for Ebuyer – covering 2023 – show the business faced a slump in demand brought on by the cost of living crisis and what bosses referred to as a “credit crunch”.
Writing in a review alongside those accounts, Mr Marsden said: “The market for electrical products and components declined further in 2023 in part driven by the reduction in discretionary spend because of the inflationary increases and the UK credit crunch. The decline in the market has led to difficult trading conditions for the company with turnover mirroring the downturn with a reduction of 22 per cent year on year.
“To address the difficult trading the directors initiated cost reduction and efficiency plans to improve both the short-term and long-term profitability of the business. These plans resulted in 50 employees leaving as the business right sized for the smaller turnover.”
Ebuyer sells a wide range of digital technology equipment, including PC components, phones, tablets and games to consumers via its website. It also has a business-specific arm that counts Chelsea FC, Pretty Little Thing and Wren Kitchens among its partners.
Urban Logistics Acquisitions 6 Limited’s parent company owns a plethora of warehouse properties with big name occupiers such as Sainsbury, Volvo and Royal Mail, among others.
The Hull Daily Mail approached Ebuyer for comment.