The Arcadia retail group, owned by billionaire businessman Sir Philip Green, has been placed into administration with up to 13,000 job losses expected.
Sir Philip Green’s company collapses: The group, which owns high street names such as Topshop, Miss Selfridge and Dorothy Perkins, has appointed Deloitte to administrate and try and find the best possible way forward for the company which could included a sale of it’s assets. Arcadia is in charge of almost 500 high street retail outlets creating 13,000 jobs which are now in jeopardy.
Ian Grabiner, Chief Executive of the group, said in a statement “This is an incredibly sad day for all of our colleagues as well as our suppliers and our many other stakeholders.” He blamed the company’s collapse on the COVID pandemic and went on to say “Our priority now is to work closely with the administrators to deliver the best possible outcome for all our stakeholders, in particular our hard-working employees across the group.
Throughout this process, trading will continue across all of our brands.” Deloitte confirmed that no redundancies would be announced just yet while they try to “rapidly” find a solution for the business by assessing all the options. However experts say that the most likely outcome would be that the group would be broken down and assets sold off meaning job losses were likely whatever happens.
It first emerged on Friday that Arcadia were in trouble with the company issuing a statement saying they were “working on a number of contingency options to secure the future of the group’s brands.” Retail analysts said yesterday that “They have been outgunned in recent years by Primark at one end of the spectrum and the pure-play online retailer including Asos & Boohoo, together with the disruptor brands like Sosandar and Nobody’s Child, amongst others.
Arcadia has been losing market share for some time, suffering too from the tarnished glow of its founder, starved of investment and lacking online competitiveness.” Dr Jonathan Reynolds, associate professor in retail marketing at Oxford Business School said “Whilst the increasingly tarnished reputation of Sir Philip might not have been immediately associated by consumers with the Arcadia brands, it almost certainly affected the group’s ability to attract and retain senior talent,”
Share on your Social Networks