The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
JOHANNESBURG, South Africa — South African fashion retailer Truworths International Ltd said on Tuesday its British footwear chain Office has entered debt restructuring talks with its lenders amid tough trading conditions.
"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 in a statement
The company said Office has around £45 million of debt, "a significant portion" of which will be settled through a lump sum payment maturing in December 2020.
Truworths acquired the Office chain in 2015 but the business has been under pressure due to the collapse of department store House of Fraser, where it had several concessions.
ADVERTISEMENT
Retailers are struggling to cope with uncertainty over Britain's exit from the European Union, weakening consumer spending and an increasing shift to online sales, meaning many are weighed down with excess and costly store space as they invest in distribution centres and logistics.
The sector has already seen the collapse of BHS, music store HMV, electronics firm Maplin and cycle shop Evans.
The South African-listed clothing, shoes, jewellery and homeware retailer said the debt restructuring talks will not have a material impact on the its operations in its home market and the rest of Africa.
By Tanisha Heiberg
The rental platform saw its stock soar last week after predicting it would hit a key profitability metric this year. A new marketing push and more robust inventory are the key to unlocking elusive growth, CEO Jenn Hyman tells BoF.
Nordstrom, Tod’s and L’Occitane are all pushing for privatisation. Ultimately, their fate will not be determined by whether they are under the scrutiny of public investors.
The company is in talks with potential investors after filing for insolvency in Europe and closing its US stores. Insiders say efforts to restore the brand to its 1980s heyday clashed with its owners’ desire to quickly juice sales in order to attract a buyer.
The humble trainer, once the reserve of football fans, Britpop kids and the odd skateboarder, has become as ubiquitous as battered Converse All Stars in the 00s indie sleaze years.