Topshop And Dorothy Perkins Owner Arcadia Has Gone Into Administration, Leaving 13,000 Jobs In Danger
Arcadia Group, the company behind highstreet brands such as Topshop, Burton and Dorothy Perkins, has gone into administration, leaving 13,000 jobs at risk.
The retail group has appointed administrators from Deloitte after talks to secure a £30 million loan to save the company failed.
Deloitte has said stores will continue to function and trade as normal for the time being, and that no employees will face immediate redundancy.
Arcadia Group has suffered during the coronavirus pandemic, though the move to administration on Monday evening, November 30, comes after the group rejected an offer of a £50 million loan from rivals Frasers’ Group, which is controlled by Mike Ashley, Sky News reports.
Ian Grabiner, chief executive for Arcadia, said, ‘This is an incredibly sad day for all of our colleagues as well as our suppliers and our many other stakeholders’.
The impact of the COVID-19 pandemic including the forced closure of our stores for prolonged periods has severely impacted on trading across all of our brands.
Throughout this immensely challenging time our priority has been to protect jobs and preserve the financial stability of the Group in the hope that we could ride out the pandemic and come out fighting on the other side.
Ultimately, however, in the face of the most difficult trading conditions we have ever experienced, the obstacles we encountered were far too severe.
The move to administration will protect Arcadia from creditors as buyers are sought for all or parts of the company, The Guardian reports. Green himself is not expected to bid for any assets.
Arcadia has more than 500 stores across the UK; the shops are expected to reopen as expected on December 2 when the current lockdown is lifted.
The group’s move to administration is said to be Britain’s biggest corporate failure of the COVID pandemic, and could mark a significant impact on UK high streets.
If you have a story you want to tell, send it to UNILAD via [email protected]
Most Read StoriesMost Read