Staples to disappear from UK high streets after sale by US owner

Office stationery brand Staples (NasdaqGS: SPLS - news) will disappear from the UK high street after its US owner sold the struggling business.

Staples Inc, which had put its European operations under review in May to save cash after authorities blocked a merger with Office Depot (NasdaqGS: ODP - news) , said the struggling UK operation was bought by restructuring specialists Hilco Capital for a "nominal sum".

It has over 100 stores in the country and employs more than 1,100 staff.

Hilco, known in retail circles for its rescue of HMV, said while it would phase out the Staples brand in the UK over the coming months it did not yet know whether there would be any impact on the workforce.

Hilco's Paul McGowan said: "While retail in the UK has been challenged recently, a team led by retail veteran Alan Gaynor will work alongside the existing management team to build a plan for success for the business."

Staples has been battling stiff competition from supermarkets and in the digital marketplace in the UK, where it has been offering a price match pledge.

The digital age has also been blamed for taking its toll on the business, which recorded a pre-tax loss of £5m in its latest annual accounts to January 2015.

Shira Goodman, chief executive and president of Staples, said: "Agreeing to sell our UK retail business to Hilco aligns with our go-forward strategy of focusing on our North American and mid-market business, and is a meaningful step in that process."