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Future of Staples UK chain hangs in the balance, say reports

18 October 2016

According to The Daily Telegraph, US Investment firm Cerberus is considering buying Staples stores across Europe, however there is doubt as to whether the 107 shops in the UK will be kept open. 

Reports show the Staples UK retail division is struggling with accounts revealing losses of £4.2 million on £220 million of sales in the year ending January 2015. Online and B2B operations appear to be doing well, however, and are seen as viable arms of the business for the future.

Earlier this year, Staples was set to merge with rival giant Office Depot in a £4.53 billion deal but America’s competition authorities blocked the move, forcing the business to consider alternative options. The UK arm depends on its US parent company, Staples Inc, which wants to cut costs and reduce overheads.

KPMG was approached to review the business earlier this year which means there could be a restructuring plan in the works or a possible acquisition if an agreement with the buyer is reached. If the business goes into administration, most (if not all) UK stores could close. It is only speculation at the moment and the outcome of the review remains to be seen.