The US owner of Staples has sold the UK arm, which employs 1,100 people across 106 stores, to Hilco for a "nominal" sum.

Hilco said it was planning to phase out Staples-branded shops over the coming months.

Staples also has online and business-to-business operations.

Paul McGowan of Hilco, which also owns entertainment retailer HMV, said: "While retail in the UK has been challenged recently, a team led by retail veteran Alan Gaynor will work alongside the existing management team to build a plan for success for the business."

Staples placed its European business under review in May after it was forced to abandon a $6.3bn merger with fellow US office supply giant, Office Depot, on competition grounds.

Shira Goodman, chief executive of Staples, said selling the UK business was in line with its strategy of focusing on the North American and mid-market business.