Posted: 10:38 GMT, Dec.. November 2020 | Updated: 11:47 GMT, Jan.. November 2020
Sir Philip Green’s Arcadia Group empire, which owns high street labels like Topshop, Burton and Dorothy Perkins, could collapse in a matter of days and. Endanger 000 jobs.
In what may be the biggest collapse of the coronavirus pandemic in the UK, the group will be appointing Deloitte administrators as early as Monday next week, although plans could be delayed.
The move, which is said to be due to the fact that Sir Philip does not have an emergency loan of 30 million. GBP to keep the retail giant alive puts its 15. 000 employees after cutting 500 jobs at headquarters in July.
The businessman who bought the London-based High Street Group in 2002 for £ 850 million had sought help from lenders after lockdown restrictions weighed on sales and disrupted crucial trading until Christmas.
Creditors are expected to have a rush to secure the company’s assets when the Arcadia Group is officially declared bankrupt. The company didn’t deny the reports in Sky News when it was contacted by MailOnline today.
Sir Philip Green, who was pictured in Monaco on Tuesday, is said to have been unable to obtain an emergency loan of 30 million. Get GBP.
The company said it was working on « emergency options » to secure the group’s future and it expects its stores to reopen next week when the UK government’s last four-week lockdown on England ends.
A spokesperson also admitted that the forced closure of our stores for an extended period of time as a result of the Covid-19 pandemic had a significant impact on trade in our businesses. ‘
The statement added, ‘The brands will continue to trade and our stores will reopen in England and on ROI once the state COVID-19 restrictions are lifted next week. ‘
Arcadia owns the Topshop, Topman, Dorothy Perkins, Wallis, Miss Selfridge, Evans and Burton brands, which are sold in over 500 stores across the country.
The Topshop store on Oxford Street in London’s West End is closed this morning on Black Friday despite a lockdown.
Online retailer Boohoo is one of a number of companies that are expected to acquire Topshop if it appoints administrators next week as reported.
Other brands like Cath Kidston, Oasis and Warehouse could be saved by investors or become pure online fashion labels. It is understood that Sir Philip is unlikely to attempt to buy back merchants from Arcadia.
Earlier this month it was reported that Arcadia was making plans for the administration, but a retail group spokesperson denied it was.
He added the company had « taken all appropriate steps » to protect itself from the effects of the pandemic.
Sir Philip’s £ 100million superyacht Lionheart was docked in Monaco earlier this week as lockdown to England continues
Arcadia Group is the latest retailer to be affected by store closings amid the coronavirus. Competitors like Debenhams and Edinburgh Woolen Mill Group have gone into bankruptcy since the March pandemic.
Even before the pandemic, brick-and-mortar clothing stores in Great Britain were facing a major structural challenge, as the profitability of running stores with traditional rental contracts was becoming increasingly difficult.
Peacocks and Jaeger fell into administration last week after Oasis, Warehouse and Laura Ashley took over administration earlier this year.
The group has 500+ retail stores across the UK, most of which are currently closed due to England’s second national lockdown ending next week.
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Philip Green, Arcadia Group, Topshop, Burton
World News – GB – TopShop Empire The Arcadia Group is on the brink of collapse within a few days
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