Current track

Title

Artist

Current show

Weekends on Vitalize

12:00 am 9:00 am

Current show

Weekends on Vitalize

12:00 am 9:00 am

Background

Topshop owner Arcadia Group enters administration

Written by on 30th November 2020

Topshop, Burton and Dorothy Perkins owner Arcadia has gone into administration, putting 13,000 jobs at risk.

A statement has revealed that no redundancies are expected to be announced immediately.

Administrators from Deliotte have been hired after the pandemic “severely impacted” sales across the group.

Stores are expected to continue trading as normal whilst all optiions are considered.

The administrators have added that all orders made over the Black Friday weekend will be honoured.

The retail group led by Sir Philip Green had failed to secure extra funding to pay its debts after sales slumped during the pandemic.

The group currently runs 444 stores across the UK with 22 overseas. It is believed that 9,294 employees are currently on furlough.

Ian Grabiner, the boss of Arcadia, said it marked an “incredibly sad” day for the group.

“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,” he said.

“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.”

Matt Smith, joint administrator at Deloitte, said that it would be working with Arcadia management to assess all of the options available to the group’s brands, which also include Evans and Outfit.

He said Deloitte would rapidly seek expressions of interest and expected to identify one, or more, buyers to hopefully ensure the future of the businesses.

Boohoo is seen as a potential buyer for some of Arcadia Group’s big name brands, such as Topshop.

In the past it has bought struggling brands Oasis, Warehouse, Karen Millen and Coast.