Latest high street casualty Office Outlet falls into administration

Office stationary retail chain Office Outlet, formerly known as Staples, on Tuesday confirmed that it has fallen into administration, putting 1,200 jobs at risk.

Two partners at business services firm Deloitte were appointed joint administrators on Monday, though Office Outlet will continue to trade at its 90 UK locations until a buyer is found.

Richard Hawes, joint administrator, said: "In addition to a general downturn in trading as a result of the ongoing decline in the stationery market and UK retail in general, the company has recently experienced a reduction in credit from key suppliers, given the economic outlook which has severely impacted the financial position of the company."

The company has been in difficulty for months, having arranged to close a number of its locations under a Company Voluntary Arrangement (CVA) in August.

CVAs, which are an alternative to bankruptcy that allow companies to dispose of loss-making locations, have become more common as the situation on the high street becomes more difficult, with chains such as Carpetright, Homebase, Mothercare, New Look and the restaurant chain Prezzo entering into CVAs last year.

Chief executive Chris Yates said: "Over the last two years the business has been transformed from the heavily loss-making old Staples business to a near breakeven modern multichannel retailer. However, additional growth capital was required to continue delivery of the next stage of the management buyout business plan. Despite being highly impressed by the Office Outlet story potential investors have held back due to retail sector sentiment and the general level of uncertainty."

The retailer is unconnected to the online retailer Staples and saw its name changed after former HMV owner Hilco acquired the UK locations of US chain Staples in 2016.