Billionaire Philip Green’s Arcadia Group, which owns clothing brands TopShop and TopMan, is reportedly facing imminent collapse which could see 15,000 jobs put at risk.
According to a Sky News report, the retail giant, which also owns Burton and Dorothy Perkins, could appoint administrators as early as next Monday after crunch talks with lenders failed to secure a £30mln loan to keep it afloat.
Arcadia’s collapse is likely to trigger a swift response from competitors looking to snap up the group’s assets, which include large stores on Oxford Street in London as well as a well developed online operation. The empire’s massive pension scheme is likely to have the biggest claim.
The company's pension scheme is likely to have the biggest claim, having already received a package of assets worth over £400mln under the terms of a company voluntary arrangement (CVA) secured last year, although this could be in doubt if Arcadia does enter administration.
It has also been floated that some of Arcadia’s brands, particularly TopShop, could find itself targeted by bids from rival firms, with online fashion giant Boohoo Group PLC (LON:BOO) among possible suitors.
The collapse of Arcadia would mark yet another bleak turn for Green, who in the last few years has seen his reputation deteriorate following a string of personal scandals while his wealth has been chipped away by the decline of the high street and the impact of the coronavirus pandemic.
Arcadia will also follow a number of other major high street brands to collapse in 2020, with department store chain Debenhams calling in administrators in April while the owner of The Edinburgh Woollen Mill, Jaegar and Peacocks has also disintegrated.