Overcast

Overcast

max temp: 12°C

min temp: 9°C

Search

Office Outlet stores in Ipswich and Colchester spared closure

PUBLISHED: 17:47 20 August 2018 | UPDATED: 00:05 21 August 2018

Office Outlet/Better Gym in Russell Road. Picture: PAUL GEATER

Office Outlet/Better Gym in Russell Road. Picture: PAUL GEATER

Archant

Office Outlet’s stores across Suffolk and north Essex have been spared closure, it is understood as fears were raised that the stationary giant may become the next victim of the retail slump.

Office Outlet’s stores across Suffolk and north Essex have been spared closure, it is understood as fears were raised that the stationary giant may become the next victim of the retail slump.

The company as expected to launch a Company Voluntary Arrangement (CVA) yesterday that would involve shutting down some of its 97 stores nationwide.

It currently has stores in Ipswich and Colchester – although it is understood that these outlets will not be closing.

The firm claims to be the UK’s leading supplier of office and home supplies, stationery, furniture and printing services.

According to Sky News, it is reported be asking some of its landlords for a three-year rent holiday in order to stay afloat.

The plan, on which landlords are understood to have been briefed last week, could be among the most radical launched this year.

Carpetright, Homebase, Mothercare, New Look and the restaurant chain Prezzo have all turned to CVAs this year in an attempt to close unprofitable stores due to difficult trading conditions.

The mechanisms require the support of creditors, but are often voted through on the basis that the alternative will leave them having to cope with even deeper losses.

Before House of Fraser was sold to Sports Direct International earlier this month in a pre-pack administration, it was on the brink of implementing a CVA to axe more than half its 59 stores.

Office Outlet was bought by the restructuring fund Hilco for a nominal sum from Staples’ US parent in 2016, and is understood to be working with Deloitte on drafting a CVA, according to The Sunday Times.

Weak footfall and rising costs have contributed to a spate of CVAs being deployed in retail this year.

Office Outlet employs 1,000 people in 96 stores, according to its latest accounts, which cover the year to May 2017. It made a pre-tax profit of £6.1m on sales of £213.9m.

Just last week, representatives for Homebase revealed the company would be shutting 42 of its stores across Britain.

The firm confirmed it would be closing some of its branches as part of a restructure plan that puts 1,500 jobs at risk.

Their proposal included the potential closure of the company’s Ipswich branch at Warren Heath.

Toys R Us also shut its doors earlier this year.

Search hundreds of local jobs at Jobs24

The decision on whether to give Stansted Airport the go ahead to raise its passenger numbers by eight million a year has been approved.

Vegan eatery the Greenhouse Cafe has opened in Felixstowe on Orwell Road.

As the debate heats up over Suffolk’s next nuclear plant and new investors climb on board, Julia Pyke from EDF reveals her concerns about recruiting the workers needed to build Sizewell C after Brexit.

A holiday lodge park in Suffolk which opened last year has won a diamond award for its exceptional quality and outstanding customer service.

From a Georgian nipple shield to a diamond dustpan - The former presenter of the popular BBC show Bargain Hunt is flogging his exotic collection of antiques in Essex.

Management Jobs

Show Job Lists

Most read

Topic pages

Newsletter Sign Up

Sign up to the following newsletters:

Sign up to receive our regular email newsletter

Our Privacy Policy

MyDate24 MyPhotos24