Office refinances debt and moves ahead with closures

Office Footwear retailer

Office owner Truworths has concluded a refinancing of the footwear chain securing its future, but some store closures will go ahead.

Truworths said it had secured an agreement with Standard Bank to receive a £32.5 million facility, which coupled with its £10.5 million in cash reserves has been used to settle its debt.

Truworths CEO Michael Mark said the funding had been obtained at more favourable rates than the existing facility, thanks to the strength of the group’s balance sheet.

“Based on Office’s profitability, liquidity and cash position, as well as the successful completion of the debt restructuring, the board wishes to advise stakeholders that no major financial restructuring of Office is being considered,” Mark said.

Mark had previously said that around 15 of around 100 stores would be closed over the next two years when leases expired along with some problematic concessions.

“Office management is now focused on driving profitable growth by improving staff morale, investing in customer and brand relationships, and improving merchandise processes,” Mark said.

“We continue to enhance the e-commerce offering to grow sales in an environment trending towards online shopping.”

South African group Truworths acquired Office for £250m in 2015.