Friday, February 22, 2019

Could Staples be the next retailer to leave the high street?


Staples’ future in the UK is reportedly being reviewed after the US-owned retailer’s merger attempt with Office Depot was blocked.

According to media reports, the stationary chain’s parent company Staples Inc. is believed to be looking at the possibility of leaving the UK market – a move that could put its British arm into administration.

Staples, which as has 107 stores across the UK, attempted a £4.53 billion merger with Office Depot but this blocked by America‘s competition authorities earlier this year.

As a result, KPMG has reportedly been called in to advise on the future of the chain store’s European presence, which could lead to either a sale of Staples‘ UK outlets, administration, restructuring, or a CVA.

Staples’ history in the UK has been a rollercoaster, but a restructure last year helped increase sales by seven per cent to £116 million – finally taking the company out of debt with a £3.4 million profit.

If the retailer were to cease its UK operations, it would join a growing list of high street retailers that have collapsed this year alone – BHS, Austin Reed and My Local all fell into in administration while Beales and Store Twenty One went into company voluntary arrangements (CVAs) in desperate efforts to save its businesses as much as possible.