Potential Store Closures and Restructuring Discussions Underway
- Office appoints advisers amid CVA rumours
- Possible closure of around 100 UK stores under consideration
- Company Voluntary Agreement (CVA) being discussed
- Alvarez & Marsal appointed as advisory firm
- Alternative restructuring options also being considered
- £45m debt due for repayment in December 2020
- Truworths acquired Office in 2015 for £250m
- Depressed retail trading environment in the UK
- Discussions with lenders ongoing
- No material impact on group’s operations in South Africa and Africa expected
Footwear retailer Office is considering a potential restructuring of its business, including the possibility of closing around 100 UK stores. The company has appointed advisory firm Alvarez & Marsal to explore a Company Voluntary Agreement (CVA) and other alternatives. With £45m in debt due for repayment in December 2020, the South African holding firm Truworths, which acquired Office in 2015 for £250m, is discussing potential debt restructuring options with lenders. The company’s management and board believe that these discussions will not significantly impact operations outside of the UK.
Factuality Level: 8
Factuality Justification: The article provides accurate information about Office’s consideration of a potential restructuring plan, the appointment of advisers, the company’s debt situation, and the impact on its operations in South Africa and the rest of Africa. It also mentions that a CVA is just one option being considered and has not yet been decided upon.
Noise Level: 3
Noise Justification: The article provides relevant information about Office’s potential restructuring plans and its financial situation but lacks in-depth analysis or actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: UK retail sector, Office’s lenders
Financial Rating Justification: The article discusses the potential restructuring of a footwear retailer, which could impact its UK stores and debt repayment to lenders, making it financially relevant.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.
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