Office Outlet goes under

AROUND 1,200 jobs are at risk after the stationery chain Office Outlet crashed into administration.

The retailer, which was formerly Staples, has called in administrators Deloitte as more shoppers flock to online firms such as Amazon for supplies. Office Outlet has more than 90 stores across the UK.

Its collapse comes after it secured a company voluntary arrangement which allowed it to shut a handful of stores and secure three years of free rent on 20 sites.

But it was not enough to save the chain, which struggled to scrape together its latest rent payments.

Joint administrator Richard hawes said: ‘In addition to a general downturn in trading as a result of the ongoing decline in the stationery market and UK retail, the company has recently experienced a reduction in credit from key suppliers, given the economic outlook which has severely impacted the financial position. We are hopeful a buyer can be found in coming weeks and continue to trade with that aim in mind.’

It comes as a blow to Office Outlet’s owner hilco Capital, the former owner of HMV. Under hilco, HMV collapsed into administration last year before being sold to Canadian music business Sunrise Records, which shut 27 outlets including the original Oxford Street branch.

hilco bought the Office Outlet stores in 2016 from US stationery firm Staples, and ditched the Staples brand and hung Office Outlet signs over shop doors. Staples’ online business in the UK is not connected to Office Outlet and is not affected.