Office Outlet in battle to save stores

OFFICE Outlet, one of Britain’s largest stationery retailers, has called in advisers to examine restructuring options as market conditions worsen.

The 90 store chain formerly traded as Staples but was acquired in 2016 from its US parent and rebranded to its current name. Last year the chain, run by chief executive Chris Yates, launched a Company Voluntary Arrangement that included negotiating ‘zero rents’ with some landlords for three years.

But last night sources said the deteriorating outlook for consumers has hampered attempts to get the £100 million-turnover business back on track. Office supply retailers are also struggling as commercial customers are using online suppliers.

‘There’s a lesson here that CVAs need to be backed by a much sharper strategy in the current retail environment if things are going to improve long-term,’ said one restructuring market source.

‘The stores are just too big. There’s a consumer market still out there but the office supplier market is moving online. Why would small businesses make a special trip out of town when you can order a pack of pens or a box of paper in a few minutes on the internet?’ the source said.

Theo Paphitis could be interested in some of the smaller stores to add to his Rymans chain if the chain is broken up. Management and private equity firm Endless may also be interested in parts of the business.