Truworths seeks funding as operations take a hit

JOHANNESBURG – Truworths International plans to secure further funding for Office, its troubled UK footwear retailer, as the Covid-19 pandemic resulted in diminished revenue at its South African operations during the year to the end of June.

Truworths, which acquired Office in 2015 for $385 million (R6.38bn), told investors in a business update yesterday that it planned to restructure the brand.

“The group is in the process of negotiating further funding for the Office business, as well as implementing various restructuring initiatives, including a staff redundancy process and store lease negotiations, to secure the long-term viability of Office,” said Truworths.

Office, which had grappled with negative consumer sentiment and Brexit-related issues, recorded a 17.4 percent decline in retail sales to £230m (R4.8 billion) from £279m a year earlier.               

Truworths said Office’s retail sales for the second half fell 35.5 percent to £79m relative to the £122m in the second half of the prior period.