Threat to 1,000 jobs as Office Outlet collapses into administration
Office Outlet has gone into administration, putting the future of 1,000 jobs at risk.
The retailer, which was formerly known as Staples, is not connected to the online-only business which currently trades under the Staples name.
In a notice on its website, Office Outlet said Richard Hawes and Daniel Butters, both partners at Deloitte, had been appointed joint administrators on Monday.
It throws the future of around 1,000 people working at more than 90 stores into doubt.
The chain launched a plan last August to shutter a handful of stores under a form of insolvency called a Company Voluntary Arrangement (CVA).
The deal also included three years of free rent on 20 sites.
We were sorry to learn of the office supplies retailer Office Outlet business being placed into administration. We would like to reassure you that there is no connection between Office Outlet and Staples UK and our service to you continues as normal.
— Staples UK (@StaplesUK) March 19, 2019
But the move failed to save the chain, which is understood to have had trouble scraping together rent for its estate of more than 90 stores ahead of the due date on Friday.
US-based stationery giant Staples agreed to sell its UK shops to Hilco Capital, the former owner of HMV, in late 2016.
The chain was then renamed Office Outlet, while a separate online business continues to operate in the UK under the name Staples.
It represents another disappointing end to a Hilco investment, after the firm was forced to place HMV into administration late last year.
It was eventually sold to Canadian music business Sunrise Records, resulting in the closure of 27 locations including the original Oxford Street branch.
