Stationery retailer, Office Outlet, has entered administration putting 1,200 jobs at risk at the retailer formerly known as Staples.
The collapse of the 90-store retailer comes less than a year after its management team first initiated a CVA to reduce rent and cut stores. The retailer appointed Deloitte to oversee the administration, with partner Richard Hawes saying Office Outlet had suffered as a result of falling stationery sales and low high street footfall.
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 said 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.”