Otto seeks new HQ as it modernises UK arm

FGH - owned by German parent Otto Group - is based in Bradford and is looking for an office in the same area, as it nears the end of its restructure. FGH chief executive Koert Tulleners - who was parachuted in by Otto Group at the end of last year to revitalise the UK arm - said the business was in great need of modernisation. He said he is focusing on developing its direct selling, particularly online.

Part of the modernisation plan is to work more closely with its German parent using its resources and buying power.

"Through the co-operation with Germany we are trying to fast forward 15 years," he said.

The restructure - which started at the beginning of the year and saw Otto UK change its name to FGH - has also led to FGH making 1,000 of its full-time staff redundant.
It remains committed to the UK and is considering launching Otto Group's DIY online operation here.

Tulleners added that it would also focus on smaller more specialised catalogues. "We need to modernise how we buy and how we present it all."

He also said that cross selling between brands was key and is working on offering products for all its brands on just one account. Tulleners said: "We have been running as two companies, Freemans and Grattan, they were fighting against each other instead of fighting against Primark or Marks & Spencer for example."

FGH also plans to improve its customer service and is implementing hand-held terminals to track all its parcel deliveries in the UK.

Separately, Otto Group is understood to be interested in parts of Primondo, the mail order arm of Arcandor.

The German retail group is facing being broken up after struggling to find an investor to keep the business moving forward as a going concern.