By Arcadia empire faces collapse within hours, say reports
The Arcadia empire including Topshop, Burton and Dorothy Perkins, could face collapse within hours, it has been reported.
Sir Philip Green’s retail company could enter administration as soon as today, putting 13,000 jobs at risk, according to the BBC.
Senior sources have reportedly told the BBC they do not expect a last-minute rescue deal.
The group had been seeking extra cash to help it plug the gap from lost sales during the pandemic.
Administration gives a business protection from its creditors while it is put back on an even keel, or while parts or all of it are sold off.
Some stores could close, but Arcadia’s brands, which also include Wallis and Evans, are household names, and are likely to survive in some form.
If the insolvency is confirmed, it’s expected to trigger a scramble among creditors to get their hands on the company’s assets.
This could allow Arcadia’s online operations and the stores which are permitted to open under lockdown restrictions to continue trading.
Bidders are likely to begin circling Topshop immediately, with online retailers Boohoo and Missguided among the prospective buyers, speculates The Sun.
Invoice insurance firm Nimbla estimates that the chain’s collapse will leave £250 million worth of invoices unpaid.
Questions over the future of Sir Philip’s retail empire were raised on Friday, after it emerged that talks with potential lenders for a £30m loan had failed.
Arcadia was seeking extra cash as coronavirus had had “a material impact on trading” across its businesses, it said.
