US stationery chain Staples is reviewing the future of its UK operations following a failed merger with US rival Office Depot.
The UK arm has 107 shops and is dependent on its US parent company for financial support.
However, the parent company may not be able to offer the financial support required for the UK arm to continue operating as a going concern.
Earlier this year its attempted $6bn (£4.5bn) merger with Office Depot was blocked by competition regulators, and now it is reviewing the future of its European operation, which includes 200 shops, and plans to slash $300m (£226m) of annual costs.
According to The Telegraph, KPMG has been appointed to work on options, which could include a sale of Staples’ UK business, financial restructuring, a company voluntary arrangement or administration.
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