After the Arcadia Group, 15,000 other UK retailing jobs are in jeopardy in the country, the owner of some of the country’s best-known fashion chains such as Topshop confirmed on Friday that it was in talks about its future.
Amid growing speculation that Philip Green’s retail empire is set to collapse as bankruptcy protection, the company said in a statement that it is “working on contingency options to secure the future of the group’s brands.”
Like others in the region, Arcadia’s brands, including Burton, Miss Selfridge and Dorothy Perkins, have faced two national lockdowns in England during the coronovirus epidemic and allied restrictions in Britain.
Competition has increased from low-cost rivals such as Primer, as well as from online inhibitors such as ASOS. Critics have also said that Green has not invested enough in businesses over the years.
In its statement, the group stated that the closure of our stores for a sustained period as a result of the Kovid-19 epidemic has had a material impact on business in our businesses.
It insisted that its brands “continue to trade” and that its stores would reopen in England as soon as the coronovirus restrictions were lifted next week.
England is in a four-week lockdown, which has forced the closure of all shops selling non-essential items. The lockdown ends on 2 December and shops will be allowed to reopen. Other countries in the UK – Scotland, Wales and Northern Ireland – have taken a slightly different approach, but all have restrictions at various stages that have closed non-essential shops.
Arcadia has reportedly been in emergency negotiations with lenders to secure a £ 30 million ($ 40 billion) loan to reduce its finances.
If it goes into so-called administration as of next week, there is likely to be a scuffle between creditors to gain control of the company’s assets.
It is the latest retailer to close stores in front of Coronovirus with rivals including Devenhams, Edinburgh Woolen Mill Group and Oasis Warehouse in the UK since the epidemic hit in March.
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