According to reports (UK & UK) Staples, the US group, is mooting options to sell off its UK business following the failed merger of its overall business with Office Depot, parent of Viking Direct. The stationery market is a far cry from what it was when Viking Direct entered the UK market more than two decades ago and Staples, with its 107 remaining UK stores as taken steps to improve performance by closing its underperforming locations. Now with myriad smaller competitors snapping at its heels, the Staples proposition has weakened considerably.
Staples UK generated £116 million sales in its most recently filed year. Turnover had increased by 7 per cent, generating a £3.4 million pre-tax profit. However the UK (and European) business is very much reliant on the US parent company for support and this, it is understood, is not sustainable as all focus is needed on growing its US market share.
KPMG is understood to be advising the business on its options which could include a sale of the UK and European business, possibly via an MBO, or simply closing it down.
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