March 16, 2019

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Philip Green’s Topshop retail empire in restructuring move

Sir Philip Green Image copyright
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Sir Philip Green is engaged on a restructuring of his Arcadia Group retail empire that features Topshop and Miss Selfridge.

The billionaire’s firm stated in a press release that it was struggling “an exceptionally challenging retail market” in the UK.

Arcadia was subsequently “exploring options” to bolster the enterprise.

Job cuts and retailer closures are possible, however they’d not be “significant”, Arcadia insisted.

There have been stories earlier on Friday that Sir Philip was contemplating an organization voluntary association (CVA), a type of insolvency that may allow him to hunt lease cuts and shut undesirable shops.

Arcadia stated that it was issuing its assertion in response to that media hypothesis, however made no point out a few CVA nor a possible sale.

“Within an exceptionally challenging retail market and given the continued pressures that are specific to the UK high street we are exploring several options to enable the business to operate in a more efficient manner,” Arcadia stated.

“None of the options being explored involve a significant number of redundancies or store closures. The business continues to operate as usual including all payments being made to suppliers as normal,” it added.

CVA’s can be utilized to chop store lease payments, and different prices, however they’re controversial and when House of Fraser used the association it sparked an enormous authorized battle with landlords.

News that one of many UK’s greatest style retail teams is struggling comes after a string of High Street names hit monetary bother.

Debenhams, New Look, Mothercare, House of Fraser, and LK Bennett are amongst a roll-call of shops hit by weak shopper confidence, greater prices, and the expansion of on-line rivals.

Many retail specialists imagine Topshop, Sir Philip’s prize asset, has fallen out of favour with as we speak’s younger customers. Arcadia additionally owns Evans and Wallis.

Last yr Sir Philip was embroiled in claims – strongly denied – of bullying and inappropriate behaviour. He was additionally criticised over the demise of division retailer chain BHS, which, after he bought it for simply £1, collapsed a yr later.

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