Retail company Arcadia goes into administration – these are chain stores at risk
Retail company Arcadia has been placed under administration, with 13,000 retail jobs currently at risk.
Arcadia, which includes Topshop, Miss Selfridge and Dorothy Perkins, has 444 stores in the UK and 22 overseas, in addition to operating online.
Collapses in administration
It first emerged on Friday (November 27) that Arcadia’s talks with potential lenders for a £ 30million loan had collapsed as the company faltered on the brink of administration.
Sir Philip Green’s company said it needed more money due to the coronavirus pandemic having had a “significant impact on trade”.
The company then went into administration on Monday evening (November 30), after rejecting a £ 50million loan offer from Mike Ashley’s Frasers Group.
Administration is a legal process that protects a limited liability company or a limited partnership by court order.
Once the process has started, no legal action can be taken against the business or the withdrawn assets without the approval of the court or that of the insolvency practitioner who has been appointed as a director to oversee the business.
Arcadia was also in trouble in 2019, when it avoided collapse after creditors backed a bailout that involved closing 50 stores and 1,000 job cuts.
What chain stores does Arcadia have?
Arcadia owns the following fashion brands:
BurtonDorothy PerkinsEvansMiss SelfridgeOutfitTopmanTopshopWallis
“The obstacles we encountered were far too serious”
Mr. Grabiner, Managing Director of 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 extended periods, has severely affected the commerce of all of our brands.
“Throughout this extremely difficult time, our priority has been to protect jobs and preserve the financial stability of the group in the hope that we can overcome the pandemic and come out of the fight on the other side.
“Ultimately, however, in the face of the most difficult trading conditions we have ever known, the obstacles we encountered were far too severe.”
Addressing Arcadia’s collapse in administration, Matt Smith, co-administrator at Deloitte, said: “Arcadia sits in the heart of Main Street and has been working to combat the impact of COVID -19 throughout this year.
“Now, the effect of the lockdowns, combined with the broader challenges facing brick and mortar retailers, has resulted in a critical funding requirement for the group and the administration today.”