Arcadia teeters on brink of collapse, 13,000 jobs at risk

The fashion group, which includes Topshop, Topman, Miss Selfridge, Dorothy Perkins and Burton, is reported to be appointing administrators from Deloitte as early as Monday, though plans are yet to be finalised, according to Sky News.

It is understood the business stands on the brink of administartion after talks were unsuccessful to secure a £30m loan to keep it afloat after being battered by the impact of pandemic and store closures.

If the administration is confirmed, it could see a scramble to control Arcadia’s assets.

The group’s main subsidiary Topshop may see a swathe of takeover bids, including from fashion rivals Boohoo, which earlier this year bought the online operations for struggling retailers Oasis and Warehouse.

Arcadia’s other brands could also face a switch to online-only or could be picked up by distressed retail investors.

It is understood Green is unlikely to buy back any of Arcadia’s operations from administrators.

Arcadia employs around 13,000 people. The majority have had their wages subsidised by the government furlough scheme amid the pandemic. 

The group cut 500 head office roles in the summer but more jobs could be at risk depending on the outcome of the administration.

It is understood that Arcadia will reopen England stores across the group next week when the national lockdown ends irrespective of whether it goes into administration or not.

A statment from Arcadia said: “We are aware of the recent media speculation surrounding the future of Arcadia. The forced closure of our stores for sustained periods as a result of the Covid-19 pandemic has 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. The brands continue to trade and our stores will be opening again in England and Ireland as soon as the government Covid-19 restrictions are lifted next week.”