Office owner seeks restructure of £45m debt pile
The owner of footwear store Office today confirmed it is in discussions to restructure £45m of debt at the retailer.
South African outfit Truworths, which bought the UK high street giant for £250m in 2015, said it must pay a “significant portion” of the debt in a lump sum payment by December 2020.
Read more: Footwear giant Office explores restructuring options
A restructure could lead to closures of some of Office’s approximately 100 UK stores.
“In light of the depressed retail trading environment currently being experienced in the UK, Office has entered into discussions with the relevant lenders regarding potential debt restructuring options,” Truworths said today.
Office and its lenders have appointed Alvarez & Marsal Europe and Deloitte as their respective advisers, Truworths confirmed.
Sky News first reported that Office was looking at its options yesterday.
A company voluntary arrangement (CVA) could lead to store closures but is not a foregone conclusion, sources told the publication.
Office has more than 160 stores across the globe. Today Truworths ruled out the possibility that Office’s woes would impact its own South African activities.
“It is expected that the UK and Office will continue to experience a difficult trading environment in the medium term,” Truworths said.
Read more: High street retailers take hit as footfall declines
“Any resultant debt restructuring will not have a material impact on the group’s operations in South Africa and the rest of Africa.”