Daily Management Review

Topshop owner is on the verge of bankruptcy


The owner of the popular Topshop and Topman clothing shops, UK billionaire Philip Green, was on the verge of bankruptcy. According to Sky News, in the next few days the company may be taken over by a temporary manager.

Eastgate Basildon
Eastgate Basildon
The Arcadia Group of British billionaire Philip Green (total assets with his wife, according to Forbes Real-Time, $2.3 billion) is on the verge of bankruptcy; a temporary manager will be appointed in the near future, a source on the market told Sky News. It specified that the collapse of the company, which owns the Topshop and Topman clothing shops, was inevitable after the failure of negotiations with lenders for a £30 million emergency loan.

The appointment of a temporary manager could take place as early as 30 November, but, as a knowledgeable source explained, there is still hope that this can be postponed. About 15,000 people could lose their jobs if the Arcadia Group were to go bankrupt. 

If the insolvency is confirmed, there will be a struggle for the company's assets, says Sky News. One of the market players told the channel that the Arcadia online business and shops that are allowed to operate under quarantine conditions are of most interest. He named the online fashion shop of the Boohoo Group one of the main contenders for Topshop. According to the channel, Green will not buy back his business. 

"The forced closure of our shops for long periods of time as a result of the COVID-19 pandemic has had a significant impact on trade in our companies. As a result, the Arcadia board has worked out several contingency options to secure the future of the group's brands," said Arcadia.

Along with Topman and Topshop, Arcadia owns other popular clothing brands, including Burton and Dorothy Perkins.

source: news.sky.com