Arcadia, the owner of Topshop and Dorothy Perkins, ‘is preparing to close a large number’ of 550 stores as corona virus blockade decimates UK shopping streets – as Debenhams stands for administration
- Arcadia reportedly engaged Deloitte accountants for the closure
- It has already fired 14,500 of its 16,000 staff during the crisis
- Debenhams has also engaged accountancy firm KPMG in its struggle to keep its head above water
Clothing giant Arcadia, which owns brands like Topshop and Dorothy Perkins, is preparing to close many of its 550 stores as the corona virus lock rips through the shopping street.
Arcadia, owned by Sir Philip Green with an estimated personal wealth of £ 950 million, has hired accountants from Deloitte because it is ‘on its knees’, according to the Sunday Times.
Department store giant Debenhams is also slipping into a potential collapse that endangers 22,000 jobs, as COVID-19 keeps customers at home.
Arcadia, owner of brands including Topshop, is reportedly preparing to close many of its 550 stores due to the corona virus (Image: the Oxford Street store, London)
Debenhams is also slipping into a possible collapse when engaging accountancy firm KPMG, endangering 22,000 jobs
Arcadia is owned by Sir Philip Green, pictured above in 2014, with an estimated personal wealth of £ 950 million
Arcadia has already outsourced 14,500 of its 16,500 staff, canceled supplier orders, and ended payments to landlords for struggling to survive.
The pension plan, which had a deficit of £ 727 million in 2018, also halted all payments during the crisis.
Brands in the company’s stable also include Miss Selfridge, Burton and Wallis.
Debenhams has engaged accountancy firm KPMG to make ‘contingency plans’ to secure the future.
The retailer has also told suppliers to expect late payments and asked landlords to rent a vacation.
Carluccio’s has also requested administration, with the owner saying it has been shut down until the coronavirus lock has been released
A spokesman said, “Like all retailers, Debenham makes contingency plans that reflect the extraordinary current conditions.
“Our owners and lenders remain very supportive and whatever actions we take is to protect the company in the current situation.
“While our stores remain closed in accordance with government guidelines, and the majority of our store-focused colleagues have been fired, our website continues to act and accept customer orders, gift cards, and returns.”
Rent-to-own retailer BrightHouse and Italian restaurant chain Carluccio collapsed into administration last week, jeopardizing 4,400 jobs as the blockade jeopardized companies’ chances of survival.
Carluccio owner Geoff Rowley said he hoped to shut down the company under the government scheme, which would provide workers with 80 percent of their wages.
The high street chain BrightHouse also went into administration during the lockdown
Accounting groups Grant Thornton, Chris Laverty, Andrew Charters and Sarah O’Toole have been appointed administrators for BrightHouse.
They said in a statement that the company will not extend new loans and that existing customers should continue to make payments normally.
Arcadia said in a statement, “No decisions have been made at this time.”