Apparel giant Arcadia, which owns brands such as Topshop and Dorothy Perkins, is preparing to close many of its 550 stores as coronavirus lockdowns tear apart on the main street, we learned.
Arcadia, owned by Sir Philip Green, who has an estimated personal fortune of £ 950 million, called on Deloitte accountants because she is “on her knees,” according to the Sunday Times.
Department store giant Debenhams is also slipping into a potential collapse, putting 22,000 jobs at risk, as COVID-19 keeps its customers at home.
Arcadia, which owns brands such as Topshop, is preparing to close many of its 550 stores due to a coronavirus (photo: its Oxford Street store, London)
Debenhams also slips into possible collapse when calls to accounting firm KPMG, putting 22,000 jobs at risk
Arcadia is owned by Sir Philip Green, shown above in 2014, who has an estimated personal fortune of £ 950 million.
Arcadia has already put 14,500 of its 16,500 staff on leave, canceled supplier orders and suspended payments to owners because it is struggling to stay afloat.
The company’s stable brands also include Miss Selfridge, Burton and Wallis.
Debenhams called on the accounting firm KPMG to make “contingency plans” to secure his future.
The retailer also told suppliers to expect late payments and asked the owners for a rental vacation.
Carluccio’s also filed for administration, the owner saying it was put on hold until the coronavirus lock was released.
BrightHouse high street chain also entered administration during lockout
A spokesperson said, “Like all retailers, Debenhams is developing emergency plans reflecting current extraordinary circumstances.
“Our owners and lenders remain very united and all the measures we can take will aim to protect the company in the current situation.
“Although our stores remain closed according to government directives and the majority of our colleagues in store have been authorized, our website continues to trade and we accept customer orders, gift cards and returns. “
Leaseback retailer BrightHouse and Italian restaurant chain Carluccio’s collapsed in administration last week, putting 4,400 jobs at risk as freezing the company’s resources stands a chance of survival.
Carluccio owner Geoff Rowley said he hoped to put the company on hold as part of the government program which would provide workers with 80% of their wages.
Accounting groups Grant Thornton, Chris Laverty, Andrew Charters and Sarah O’Toole have been appointed directors of BrightHouse.
They said in a statement that the company would not issue new loans and that existing customers should continue to make payments as usual.
Arcadia said in a statement, “No decision has been made yet.”