Office appoints advisers amid CVA speculation

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Office CVA
// Footwear retailer Office appoints restructuring advisers to assess its financial position
// Alvarez & Marsal will consider options for the retailer, including a potential CVA
// A restructuring plan could be finalised in the coming weeks
// Deloitte has also been appointed to advise on its options

Office has reportedly drafted in advisers to assess its financial health, fuelling speculation that it could be the latest retailer on the verge of filing a CVA.

According to Sky News, the footwear retailer hired specialists from Alvarez & Marsal to consider options, including a potential CVA that could lead to the closure of some of its 100 stores across the UK.

Deloitte is also reportedly involved on behalf of Office’s lenders.

There is no information at this stage as to whether Office’s stores in Ireland or Germany would be affected if a CVA is pursued.

Office is owned by South African-based Truworths International, which acquired the footwear chain for around £250 million four years ago.

Operating profit at Office plunged by 41 per cent  to £15.3 million for the financial year ending July 1, while EBITDA dropped 35 per cent to £21 milliona nd gross margin fell to 44.4 per cent from 46 per cent the previous year.

Office also suffered from House of Fraser’s administration filing, as it was owed £700,000 by the department store for trading in its concessions there.

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