- Profits fall by 16%
- Performance hit in a weak fashion market
- Consultancy McKinsey brought in to advise
Profits at retail tycoon Sir Philip Green’s Arcadia business have fallen as the Topshop to Dorothy Perkins group confronted harsh trading conditions.
Green’s holding company Taveta Investments’ earnings slumped 16% to £211m, as sales declined 2.5% to just over £2bn last year, the Mail on Sunday reported.
The entrepreneur’s 2,000-branch business suffered during a year in which the BHS chain which he formerly owned collapsed a year after its sale for £1 to Dominic Chappell’s Retail Acquisitions investment vehicle.
Green was said to have ordered a reorganisation of the retail group, which a raft of his high-level lieutenants has quit including Topshop boss Mary Homer.
As part of the drive to put the business on track, contributions to the group staff pension have doubled to £50m.
Green is now preparing his business for a drive online and overseas. He has reportedly drafted in consultancy McKinsey to advise on how best to strengthen the business,
The formal accounts will include a non-cash writedown to cover the falling value of store properties and leases in some high streets, which is anticipated to further erode pre-tax profits.