Connect with us

Hi, what are you looking for?

Investing

Sir Philip Green’s fallen Arcadia empire owes its creditors £750m

Sir Philip Green

Sir Philip Green’s high street empire fell into administration owing its creditors £750 million.

The Topshop chain, once the most valuable part of his empire, collapsed with gross liabilities of more than £550 million. Outfit, the discount brand, owed £80 million.

Arcadia’s debts are steeper than originally thought and suggest that creditors may receive less than they might have hoped. The figure is thought to exclude unsecured debt to the company’s retirement fund and liabilities to HM Revenue & Customs.

Deloitte, which is handling the administration, will provide further updates to creditors. Arcadia called in the firm last month in the most striking sign yet of the damage inflicted on the high street by the pandemic.

Asos, the online fast-fashion seller, has confirmed that it is in talks to acquire the Topshop, Topman, Miss Selfridge and HIIT brands. In a further sign of the changing of the guard, Boohoo, another online-only fashion retailer, has agreed to buy Debenhams’ digital business for £55 million in cash. Neither wants to acquire any of stores.

Arcadia’s fall marked the end for a high street stalwart that traced its origins to 1903 when Montague Burton, an 18-year-old Lithuanian immigrant, started a menswear business.

It also drew the curtain on the decades-long career of Sir Philip, 68, the self-styled king of the high street. He was once fêted for his dealmaking prowess, but was slow to adapt to changing consumer behaviour.

It is unclear whether Arcadia’s large liabilities will affect the 9,000 members of its pension scheme. It had a deficit of £138 million in 2018, but experts said it could cost as much as £350 million to offload the liabilities to an insurer.

The retirement scheme is one in a queue of creditors, but in 2019 it secured some guarantees from the company and Lady Green, 71, Sir Philip’s wife who lives in Monaco and is the registered owner of the company. She received a £1.2 billion tax-free dividend from the company in 2005.

Arcadia provided the scheme with a security over its main Topshop store on London’s Oxford Street and an office building on Tottenham Court Road. However, they have mortgages against them and their value is likely to have fallen during the pandemic.

Read more:
Sir Philip Green’s fallen Arcadia empire owes its creditors £750m

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Investing

Elon Musk has suggested that he could seek to pay a lower price for Twitter, as the social media company’s would-be owner expressed further...

Investing

Tens of thousands of apprenticeships could be created and hundreds of millions of pounds saved if the flawed apprenticeships levy were reformed, according to...

Economy

The man accused of killing a doctor and wounding five other people in a shooting at a Taiwanese-American church banquet in California methodically planned the attack because he was upset over Chinese-Taiwanese tensions,...

Investing

Workers should “think and reflect” on whether to ask for pay rises because they risk fuelling inflation, the governor of the Bank of England...

Investing

Ofgem has come under fire for extending rules that will effectively prevent energy suppliers from offering deals that are significantly cheaper than the price...

Investing

Working from home is more popular in Britain than in continental Europe and North America, with commuting journeys down by more than a fifth...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.