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British retailer Arcadia enters into administration
01 Dec '20
1 min read
Pic: Shutterstock
UK clothing retail group Arcadia recently entered into administration after being badly hit by the coronavirus-induced lockdowns and fierce online competition. Owned by businessman Philip Green, the group, comprising eight of the country’s high-street and fashion retail brands, will be administered by the consultancy firm Deloitte, a company statement said.
When a company goes into administration, it becomes insolvent and is put under the management of licensed insolvency practitioners. The directors and the secured lenders can appoint administrators through a court process to protect the company.
The news makes the jobs of around 13,000 employed at the group’s flagship stores, including Topshop, Topman, Dorothy Perkins, Burton, Miss Selfridge, Evans and Wallis, uncertain.
Deloitte has clarified that there are no layoffs planned and trading will continue with a reopening of outlets this week as the country emerges from a four-week lockdown.
"In the face of the most difficult trading conditions we have ever experienced, the obstacles we encountered were far too severe," Arcadia's managing director Ian Grabine said in a statement.
Without offering any reason, Arcadia turned down a £50-million ($67-million) loan from British sportswear tycoon Mike Ashley's Frasers Group to stave off bankruptcy.
When a company goes into administration, it becomes insolvent and is put under the management of licensed insolvency practitioners. The directors and the secured lenders can appoint administrators through a court process to protect the company.
The news makes the jobs of around 13,000 employed at the group’s flagship stores, including Topshop, Topman, Dorothy Perkins, Burton, Miss Selfridge, Evans and Wallis, uncertain.
Deloitte has clarified that there are no layoffs planned and trading will continue with a reopening of outlets this week as the country emerges from a four-week lockdown.
"In the face of the most difficult trading conditions we have ever experienced, the obstacles we encountered were far too severe," Arcadia's managing director Ian Grabine said in a statement.
Without offering any reason, Arcadia turned down a £50-million ($67-million) loan from British sportswear tycoon Mike Ashley's Frasers Group to stave off bankruptcy.
Fibre2Fashion News Desk (DS)
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