LONDON (dpa-AFX) - British retailer Arcadia fashion group, owned by Philip Green, has entered into administration as it seeks protection from creditors following significant business loss during the coronavirus pandemic.
The administration is likely to affect around its 13,000 employees. The retailer, which owns eight high street and fashion retails brands, is now seeking buyers for its brands.
According to Deloitte, which has been appointed as administrator, the effect of the lockdowns, combined with the broader challenges facing bricks and mortar retailers, have resulted in a critical funding requirement, and now the administration.
Arcadia, which operates Topshop, Topman, Dorothy Perkins, Wallis, Miss Selfridge, Evans, Burton and Outfit brands, has not announced any redundancies yet, and its stores will continue to operate through the process.
The company trades from 444 leased sites in the United Kingdom and 22 overseas. Deloitte noted that a total of 9,294 employees were on furlough at the time of the Administrator's appointment.
Ian Grabiner, CEO, 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 prolonged periods has severely impacted on trading across all of our brands.'
The retailer, which was struggling even before coronavirus, was on the verge of collapse, despite a rescue deal. The company had been seeking extra cash to continue to operate.
Meanwhile, Frasers Group plc. confirmed Monday that it had made an offer to Arcadia for a lifeline loan of up to 50 million pounds, but it was declined. Frasers also said if Arcadia enters into administration, it would be interested in participating in any sale process.
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