It was only a little over a year ago that Arcadia was saved from being plunged into administration, but following an incredibly tough year for British retail, it is expected that the owner of Topshop, Burton, Miss Selfridge, Dorothy Perkins and more other former high-street giants will today collapse.
The retail empire headed up by Sir Philip Green will go into administration, senior sources at the company have told the BBC.
The company had been seeking extra cash to help “plug the gap” from lost sales during the pandemic, but the sources revealed that they did not expect a last-minute rescue deal to surface like we saw in June 2019.
If Arcadia goes into administration, 13,000 jobs will be at risk, while there are also fears that many would suffer cuts in their retirement income if the pension scheme falls into the lifeboat Pension Protection Scheme, The Guardian has reported. Some stores could close, but it is expected that many of Arcadia’s brands will remain in some form.
“Regrettably for everyone involved in Arcadia including, in particular, suppliers and employees, the game is up,” Former City minister and former chairman of Marks & Spencer, Paul Myners told the BBC.
“Covid has obviously been a significant factor but the truth is this group of brands has been haemorrhaging now for 15 years. It’s become an insignificance. Sir Philip never really accepted the opportunity or challenge of online trading. He made no investment in that area at all.”
From Harper’s Bazaar UK