Office owner confirms restructuring of £45m debt pile

The owner of shoes chain Office, Truworths International, confirmed on Tuesday that it will restructure its £45m debt pile, possibly leading to the closure of 100 stores in the UK.

Truworths, which bought the UK high street giant for £250m in 2015, said it must pay a “significant portion” of the debt in a lump sum payment by December 2020.

“In light of the depressed retail trading environment currently being experienced in the UK, Office has entered into discussions with the relevant lenders regarding potential debt restructuring options,” Truworths said on Tuesday.

Office and its lenders have appointed Alvarez & Marsal Europe and Deloitte as their respective advisers, Truworths confirmed.

Truworths ruled out the possibility that Office’s woes would impact its own South African activities.

“It is expected that the UK and Office will continue to experience a difficult trading environment in the medium term,” Truworths said.

“Any resultant debt restructuring will not have a material impact on the group’s operations in South Africa and the rest of Africa.”

The chain was looking at a restructuring programme as it struggled amid a British high street under siege from online competitors and economic uncertainty more generally.

Sir Philip Green's Arcadia Group saw a CVA approved last month and this week creditors to Monsoon Accessorize will vote on a CVA proposal that will not entail immediate store closures.

In the last two years, Carpetright, Debenhams, House of Fraser, Mothercare‎ and New Look have all turned to CVAs to survive.