Japanese clothing and homeware retailer Muji’s European division is poised to enter administration, marking another setback for the UK’s high street.
The decision is part of a ‘planned strategic restructuring of its business’, The Guardian reported citing a spokesperson for the retailer.
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The company, which operates six stores in London and one in Birmingham, expects to finalise a deal soon.
The retailer has assured that the administration process will not immediately affect its stores, employees, or the overall business operations.
The newspaper quoted the company as saying: “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.”
Founded in 1980, Muji offers a range of clothing, stationery, homeware, beauty items, and food essentials.
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By GlobalDataThe brand has also expanded into other areas and has designed autonomous shuttle buses.
This development comes on the heels of several other high street retailers facing financial difficulties in the UK.
In February this year, The Body Shop entered into administration, which led to the closure of 75 stores in the UK.
More recently, the entity behind Ted Baker also appointed administrators, leaving nearly 1,000 at risk of losing jobs.
Last year, the collapse of Wilko resulted in the shutdown of 400 stores and extensive job losses for its workforce of approximately 12,500.
