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OT Group to Exit UK and Ireland Markets;
Plans to Sell Office Depot UK to New Partners.
In a significant development for the office supply sector, OT Group has officially announced its decision to withdraw from the UK and Ireland markets. The company will divest its Spicers wholesale division and has proposed a strategic sale of several key assets.OT Group revealed that it plans to sell the Spicers brand to VOW Wholesale, marking a major shift in its business strategy. Additionally, the company has outlined intentions to transfer ownership of the 5 Star brand assets to VOW Wholesale in both the UK and Ireland. The online Officeteam platform and Office Depot UK are slated for acquisition by Paragon under the current proposals.
In its announcement, OT Group sought to assure existing suppliers that all outstanding payments will be settled in full, albeit over an extended period estimated to be around nine months. Key points from OT Group’s official statement include:
“Following a thorough review of our operations in the UK and Ireland, we have determined that our contract customers will benefit more from the sale of the Office Depot UK and Ireland businesses to Paragon. This transition will include product supply and distribution managed through a third-party logistics arrangement with VOW Wholesale.”
The company also noted that its online Officeteam business is set to be sold to Paragon as part of the restructuring efforts.
“After evaluating our wholesale business under the Spicers brand, we have decided to exit this market. We are also proposing to transfer the 5 Star brand assets to VOW Wholesale. We are committed to paying all reconciled and agreed balances to our suppliers. To manage this process effectively, we will implement a Company Voluntary Arrangement (CVA) to facilitate creditor payments.”
OT Group’s shareholders are contributing significantly to mitigate any financial impact on suppliers, ensuring that losses are minimized. The CVA will be managed by an independent supervisor to oversee and adjudicate claims.
This announcement, while anticipated given recent industry speculation, represents a notable shift within the sector and will undoubtedly impact market dynamics in the coming months.
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