Topshop owner Arcadia on brink of collapse

News / Sat 28th Nov 2020 at 10:45am

SIR Philip Green’s retail empire Arcadia, which includes Topshop, Burton and Dorothy Perkins, is understood to be on the brink of collapse reports the BBC.

Sir Philip had been in talks with potential lenders about borrowing £30m to help the business through Christmas.

However, these talks have failed and administrators could be appointed on Monday, putting 13,000 jobs at risk.

Arcadia said it was working on “contingency options”.

Arcadia admitted that the coronavirus had had “a material impact on trading across our businesses”.

“As a result, the Arcadia boards have been working on a number of contingency options to secure the future of the group’s brands,” it said.

“The brands continue to trade and our stores will be opening again in England and the Republic of Ireland as soon as the government Covid-19 restrictions are lifted next week.”

However, even before the pandemic, Arcadia’s best-known names – like Topshop – were struggling against nimbler online-only fashion retailers like Asos, Boohoo and Pretty Little Thing.

And rival High Street chains like Zara have invested heavily in their digital business while Topshop has been slow to catch up.

In its most recent accounts for the year to 1 September 2018, Arcadia reported a £93.4m pre-tax loss compared with a £164.6m profit in the previous 12 months.

It also said sales fell 4.5% to £1.8bn.

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