Birmingham retailer Osbornes enters administration

BIRMINGHAM-headquartered stationery shop chain Osbornes has gone into administration.

The 180 year-old retailer – based in Hay Mills – has called in administrators from the Birmingham office of restructuring firm FRP Advisory.

The move into administration could threaten 140 jobs at the retailer which operates 20 shops across the Midlands including branches in Birmingham at Bearwood, Cotteridge, Erdington, Great Barr, Harborne, Kings Heath and Sheldon and Shirley in Solihull.

It also has shops in Leamington and Worcester as well as outlets in the East Midlands and the South West.

Osborne has been loss-making for several years, against a backdrop of intense competition from supermarkets and larger rivals.

Osbornes employees have been informed of the decision to call in administrators, with FRP said to be hopeful of identifying a buyer to save most, if not all, of the business.

The retailer was founded in 1832 by Edward Corn Osborne, who established a printing business on New Street in Birmingham city centre.

It was the subject of a buyout by directors in 2008.

The administrators – FRP partners Steve Stokes and Gerald Smith – said they will review the financial position of the company and its store portfolio, whilst continuing to manage Osbornes as a going concern, liaising with stakeholders and marketing the business for sale.
 
Stokes said: “We are focused on working with Osbornes’ customers and suppliers while we conduct a thorough sales process of the business to secure its long- term future.

“Osbornes is one of the oldest local businesses in the Midlands and has operated in Birmingham’s town centre for just shy of two centuries, enjoying tremendous amount of goodwill and support from all the regional and local communities in which it operates.
 
“In line with economic challenges facing many high street retail businesses, Osbornes has battled through tough trading conditions over the last few years.

“Recently trading has been particularly hard, with Osbornes, like many other town centre retailers, suffering from further squeezes on consumers’ discretionary spending that has impacted the high street, as well as being in a particularly difficult and competitive sector.

“Despite the continuing support of a loyal customer base, anticipated cash flow problems have prompted the need for the directors to seek the protection of administration whilst the business is restructured and marketed for sale.”