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Office Outlet appoints Deloitte for administration

Stationary retailer, Office Outlet has appointed Deloitte to oversee its administration, with partner Richard Hawes saying the retailer had suffered as a result of falling stationery sales and low high street footfall.

The administration will put 1,200 jobs at risk at the 90-store retailer formerly known as Staples. The move comes less than a year after its management team first initiated a CVA to reduce rent and cut stores.

Hawes said: “We are hopeful a buyer can still be found for the business in the coming weeks and we will continue to trade the business with that aim in mind.”

The Staples brand was cut from Britain by its American parent in 2016 and was purchased by former HMV owners Hilco for a nominal sum. Last summer the retailer’s owner used a CVA to close four stores ahead of a sale to its management team led by CEO Chris Yates. He said the takeover had seen losses reduced, however he added that the company had been unable to secure additional funds required to fund the rest of the business’s overhaul.

Yates said: “Despite being highly impressed by the Office Outlet story, potential investors have held back due to retail sector sentiment and the general level of uncertainty.”

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