DIYWEEK.net

Poundland founder Dave Dodd's attempt to 'shake-up' the retail sector with a new variety chain fails after just one year, as he admits he was unable to make the business viable.
Hub Retail is in the process of appointing liquidators, resulting in 57 job losses across the business, the company confirmed today.

The four-strong retail chain, launched in September 2010, was the brainchild of David Dodd, co-founder of discount chain Poundland. He planned to 'shake up' the variety retail sector with the introduction of a new mid-market chain of stores.

The aim was for Hub to serve 12,000 customers a week in each store, and "re-establish variety as a must-have feature in high quality mainstream shopping environments".

However, the chain failed to achieve anticipated sales volumes in the middle market and was forced to position itself within the value sector. There it was unable to compete with the buying power of established discount retailers and Mr Dodd has taken the decision to close the business.

He said: "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."

He added: "In difficult economic times, it is easy to sit back and do nothing. We tried something new, gave it our best but sadly couldn't make the business viable."

Hub, which described itself as "a visionary next generation variety store, offering thoughtfully focused and affordable shopping for the style conscious", stocked a range of product lines including kitchenware, household, electrical, hardware and homewares, as well as garden and leisure and stationery.

It operated stores in Manchester, Telford, Lichfield and Stafford.