Mon, 01 Apr 2024 | ADMINISTRATION
The European business of Japanese clothing and homeware retail chain Muji is set to be placed into administration, as pressure continues to grow on high street retailers across the UK. A spokesperson for the company said that the move was part of a “planned strategic restructuring of the business”, with administrators expected to be appointed shortly.
Muji has seven UK stores, six of which are in London, with a single location in Birmingham. Despite being set to enter administration, the company has stated that it is “business as usual”, with all stores and e-commerce to continue operating and no immediate impact on shops, staff or the running of the company.
The brand was launched in Japan in 1980 and sells a wide range of stationery, homeware, clothing and beauty products inspired by Japanese design. The company’s popularity in recent years has been driven by its focus on simple, functional household products. However, in recent years, it has expanded its product range in numerous ways, with such diverse ventures as prefab houses and driverless shuttle buses.
In its accounts for the year ending August 31 2021, the European arm of the business (Muji Europe Holdings Limited), reported turnover of £75.8 million, but fell to an operating loss of nearly £16.3 million.
At the time, its fixed assets were valued at slightly over £15 million and current assets at close to £62.1 million. However, the company’s debts at the time left it with net liabilities totalling more than £15.5 million.
The company’s impending administration comes amid continuing distress among UK high street retailers, with recent collapses including cosmetics chain The Body Shop and clothing giant Ted Baker.
Read more about how mounting UK insolvencies are impacting industries including retail and construction
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