Some 13,000 retail jobs are at stake following Arcadia’s collapse in management.
Sir Philip Green’s retail business operates from 444 locations in the UK and 22 and online, and lately has more than 9,000 licensed workers.
The workforce is now facing a dubious future, no layoffs are announced without delay, and the company will continue to negotiate normally, and outlets that have been closed due to the most recent blockade will reopen once restrictions are lifted this week.
This is the worst failure of the COVID-19 crisis to date.
Deloitte administrators said they would now look for buyers for the company, whose brands ranging from Topshop and Topman to Dorothy Perkins and Burton “are in the center of the main street. “
Arcadia’s executive leader, Ian Grabiner, said it was an “incredibly unhappy day” and that the company had failed to succeed over the serious effect of the coronavirus pandemic on trade.
Sky News revealed exclusively Friday that the organization nearly took the place of work after negotiations on a 30 million pound loan failed to help compensate for a currency haemorrhage due to the coronavirus.
Administrators said orders placed over Black Friday weekend would be fulfilled.
The collapse has raised considerations about the long-term pension plan of the company and the pressure on Sir Philip to fill a black void in the background estimated at 350 million pounds.
The Arcadia meltdown on Monday night came here after the Frasers Group turned down a £ 50m loan offer, controlled through Sir Philip’s rival Mike Ashley.
Labor leader Sir Keir Starmer tweeted: “This is terrible news for thousands of Arcadia workers just before Christmas. Philip Green do the right thing and close the Arcadia pension deficit. “
Mr. Grabiner, Managing Director of Arcadia, said: “This is an incredibly unhappy day for all of our colleagues, as well as for our suppliers and many other stakeholders.
“The effect of the COVID-19 pandemic, coupled with the forced closure of our points of sale for extended periods of time, has seriously affected the industry of all our brands.
“Throughout this incredibly complicated time, our priority has been to employ and maintain the monetary stability of the organization in the hope that we can succeed over the pandemic and fight on the other side.
“In the end, however, in the face of the most difficult trading situations we have experienced, the obstacles we encountered were too severe. “
The cave turns out to be a depressing end to Sir Philip’s brilliant retail career.
Once celebrated as king of the high street, he rubbed shoulders with celebrities and revered through the prime ministers.
But the tycoon complained after the BHS collapse in 2016, a year after he sold it to Dominic Chappell, in serial bankruptcy, for $1.
Last year, Sir Philip celebrated a victory in the “95th minute,” as Arcadia refrained from sinking when creditors agreed to a voluntary trade agreement (CVA), a restructuring that resulted in the closure of several outlets and hiring reductions. .
Since then, it has faced the additional pressure of the pandemic, which has had a devastating effect on thousands of retail jobs, from Marks
Arcadia owns the Topshop and Topman brands, most valuable, such as Dorothy Perkins, Wallis, Miss Selfridge, Evans, Burton and Outfit.
Matt Smith, co-director of Deloitte, said: “Arcadia is in the center of Main Street and has been running to fight the COVID-19 effect all year long.
“Today, the effect of blockades, combined with the broader demanding situations faced by physical retailers, has led to a critical investment need for today’s organization and administration.
Deloitte said Arcadia’s CVA organization will terminate as a result of management.
The collapse raised doubts about a 385 million pound package to complement the group’s pension fund agreed with last year’s restructuring, which includes contributions from Arcadia and Sir Philip’s family.
Stephen Timms, chairman of the Common Labour and Pension Selection Committee, has written to the pension regulator inging him to “fight the corner” of pension plan members.
He said: “There is definitely an ethical argument for the green circle of relatives to do the right thing and guarantee Arcadia’s unconditional staff what is legitimately theirs, no matter what happens this Christmas. “