RISKY BUSINESS
Major homeware chain on brink of closure as European arm to call in administrators in another blow to UK high street
The retailer has seven stores in Britain
A MAJOR homeware chain is set to call in administrators in another blow to the UK's struggling high street.
Bosses at the Japanese retailer, Muji, said it will undergo new changes as part of a "planned strategic restructuring of the business".
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A spokesman for the European arm of Muji, which has six stores in London and one in Birmingham, said it expects to reach a deal shortly.
But stationery lovers shouldn't panic as the decision has no immediate impact on local branches, bosses said.
The firm added: "For Muji's colleagues and customers in Europe it is business as usual.
"All stores and e-commerce will continue to operate as before, and all new and outstanding orders will be fulfilled."
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Muji is known for its sleek and minimalist designs, including clothes, stationery, homeware, beauty products and cupboard essentials.
The popular chain has six stores in London, one in Birmingham and dozens across mainland Europe and the Nordics.
It was originally launched in Japan in 1980 and it's known for its Japanese-inspired convenient items.
The move comes in a huge wave of retail closures across the country.
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High street chaos
Retailers have been feeling the squeeze since the pandemic, while shoppers are cutting back on spending due to the soaring cost of living crisis.
High energy costs and a move to shopping online after the pandemic are also taking a toll, and many high street shops have struggled to keep going.
The high street has seen a whole raft of closures and more are coming.
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The number of jobs lost in British retail dropped last year, but 120,000 people still lost their jobs figures suggested.
Figures from the Centre for Retail Research revealed that 10,494 shops closed for the last time during 2023, and 119,405 jobs were lost in the sector.
It was fewer shops than had been lost for several years, and a reduction from 151,641 jobs lost in 2022.
The centre's director, Professor Joshua Bamfield, said the improvement is "less bad" than good.
Although there were some big-name losses from the high street, including Wilko, many large companies had already gone bust before 2022, the centre said, such as Topshop owner Arcadia, Jessops and Debenhams.
"The cost-of-living crisis, inflation and increases in interest rates have led many consumers to tighten their belts, reducing retail spend," Prof Bamfield said.
"Retailers themselves have suffered increasing energy and occupancy costs, staff shortages and falling demand that have made rebuilding profits after extensive store closures during the pandemic exceptionally difficult."
All stores and e-commerce will continue to operate as before, and all new and outstanding orders will be fulfilled
Spokeperson
Alongside Wilko, which employed around 12,000 people when it collapsed, 2023's biggest failures included UK Flooring Direct, Planet Organic and Tile Giant.
The Centre for Retail Research said most stores were closed because companies were trying to reorganise and cut costs rather than the business failing.
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However, experts have warned there will likely be more failures this year as consumers keep their belts tight and borrowing costs soar for businesses.
Last year, around 14% of insolvencies were in retail businesses, according to official figures.
Retailers closing stores in 2024
RETAILERS have been feeling the squeeze since the pandemic, while shoppers are cutting back on spending due to the soaring cost of living crisis.
High energy costs and a move to shopping online are also taking a toll, and many high street shops have struggled to keep going.
Here's a list of all the big-name brands closing stores this year:
- Argos - The brand announced plans to close 100 standalone UK branches last year as it looks to move away from the high street and focus on expanding its presence in supermarkets.
- B&Q - The chain has over 300 shops across the UK, so chances are you have one near you, but some stores have closed in recent months.
- Boots - The health and beauty chain announced that it would be closing 300 stores last July. Closures are ongoing and this will see the retailer's estate reduced from 2,200 to 1,900 shops.
- Clintons - Clintons mulled plans to close 38 shops in a bid to avoid insolvency late last year. We've listed the stores affected.
- Costa Coffee - The caffeine giant has around 2,000 sites nationwide, so chances are you'll have one near you. The chain has shut the doors to dozens of its sites recently. We've revealed which stores are due to close this year.
- Iceland - The supermarket has more than 900 stores but closed nearly two dozen sites in 2023, and more selected shops are due to shut.
- Lidl - The supermarket, which has 950 stores, is changing up shop locations, which has meant that some stores have to close. But the retailer is also looking to open 12 new supermarkets.
- M&S - M&S, which runs 405 stores across the country, has been closing a string of branches across the country in a blow for shoppers. It's not all bad news, though, because the chain also has big plans to open dozens of new shops as well.
- Trespass - The firm announced in July last year that it was closing six branches, but more are on the way.
- WHSmith - The retail giant, which runs over 1,100 stores, has shuttered eight stores since March 2023, but more are coming.