Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Office hires restructuring advisers

Footwear retailer Office has appointed restructuring advisers to assess the company’s financial position.

The Truworths-owned retailer has appointed advisory firm Alvarez & Marsal (A&M) to consider options, including a potential company voluntary arrangement (CVA). A&M is expected to finalise a restructuring plan for Office in the coming weeks. Meanwhile, professional services firm Deloitte has also been appointed to advise on its options. 

Operating profit at Office slipped 41% for the 52 weeks to 1 July, as “tough trading conditions” and increased discounting hit the its bottom line. The retailer reported an operating profit of £15.3m, down from £25.9m the previous year. The prior trading period was 53 weeks.

EBITDA fell by 35% to £21m as a result of the “tough trading conditions”, and gross margin fell to 44.4% from 46% the previous year because of an “increase in markdown sales”.

At the time of the report, Office was trading from 116 stores and 40 concessions primarily in the UK, Ireland and Germany. Its concessions are with House of FraserSelfridgesArcadia and Brown Thomas. 

Along with many other retailers, Office suffered when House of Fraser fell into administration in August 2018. The department store owed the footwear retailer almost £700,000, which is not expected to be repaid.

Brian McCluskey retired from his role as chief executive at Office in September after 15 years with the retailer. He was replaced by Lorenzo Moretti, who was previously vice-president of global retail at consumer electronics company Sonos, in October. 

A&M, Deloitte and Office have been contacted for comment.

Readers' comments (1)

  • All 'advisers' do is either tell you what you already know or should know - at a premium.

    Unsuitable or offensive? Report this comment

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.