Arcadia: What Its Collapse Means For Jobs, Pensions And Shopping Orders
The coronavirus pandemic has claimed its biggest retail scalp so far with the announcement on Monday that Philip Green’s Arcadia fashion group has collapsed into administration.
Here’s what it means for jobs, the high street and what happens next:
How big is Arcadia and how many jobs are at risk?
The group trades from 444 leased sites in the United Kingdom and 22 overseas.
It employs more than 13,000 people, 9,294 of whom are currently on furlough.
Which brands are affected?
Deloitte said late on Monday it had been appointed Arcadia’s administrator and would seek buyers for the group’s brands: Topshop, Topman, Dorothy Perkins, Wallis, Miss Selfridge, Evans, Burton and Outfit, Reuters reports.
There will also be a knock-on affect on Debenhams. Many of Arcadia’s staff worked at its brands’ concessions in the department store, which was hoping for a rescue deal after sliding into insolvency earlier this year.
However JD Sports, the last remaining bidder for Debenhams, is now expected to pull out of talks following the collapse of Arcadia, the BBC reported.
Debenhams currently employs 12,000 people.
Will there be redundancies?
No redundancies have been announced as a result of the appointment and stores will continue to trade, the administrators said, with many due to reopen on Wednesday when England’s lockdown is lifted.
Retail trade union Usdaw has said it is seeking urgent meetings with Arcadia’s administrators in a bid to preserve jobs.
Dave Gill, Usdaw national officer, said: “Now that Arcadia is in administration, it is crucial that the voice of staff is heard over the future of the business and that is best done through their trade union.”
What happens next?
Administrators need to find buyers for the various segments of the business.
Mike Ashley’s Frasers Group said on Monday it was interested in participating in any Arcadia sale process.
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