The footwear chain Office is considering a restructure that could result in some store closures after being hit with the high street downfall.
The retailer suffered a 3% fall in UK sales in the six months to December 2018, it closed six of its 100 UK outlets. It has been said Office are planning to do a Company Voluntary Arrangement (CVA) which could see more store closer in order to keep the company trading.
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Office is owned by South African holding company Truworths International who bought it for £250 million in 2015. It trades in Germany and Ireland as well as the UK.
The chain is working with advisory firm Alvarez & Marsal (A&M) to make plans on how to save the UK stores from failing. It is unclear if the oversea shops would be affected by a CVA. A&M will be revealing the plans for Office in the upcoming weeks.
Earlier this year, Office said it had “continued concerns over Brexit and depressed consumer demand” had affected its business.
Office is not the only high street brand which is facing financial/sale problems. Debenhams, Mothercare and New Look have also all closed stores over the past year in a bid to scale back outgoings.
The high street downfall is all to do with the change in customer habits. The internet is becoming the first choice for shoppers leaving high street stores/branches to struggle survival. Everyone is turning to shopping online as it is seen as an easier way to shop; this is because you can do it from the comfort of your home and there is no need to face traffic. This is leaving high street stores at a high risk of losing profits.
To read more about the high street and why they are failing click the link below:
