Otto eyes high street stores

Otto UK, owner of Freemans and Grattan catalogues, is eyeing up high street stores after a strategic review and the resignation of chief executive Mike Hancox.

German parent company Otto Group has taken over the running of the UK business and has drafted in consultants EMC to conduct a second review, which could see bricks and mortar stores added to the UK home shopping portfolio. Otto Group already has retail chains in Europe and the US.

Hancox will step down in August after two-and-a-half years at the business. Otto UK's marketing director Tony Preedy has also quit.

Industry sources told Drapers that other senior management were likely to leave within the next few weeks.

Otto Group chief executive Hans-Otto Schrader will take direct responsibility for Otto UK until Hancox is replaced.

Separately, it is likely that Otto UK will transfer ownership of Parcelnet, its logistics arm, to Hermes Logistics in Germany.