In a move that is not so surprising but will affect many, Arcadia has announced that it is going
into administration. This could have been expected considering the fact that
the coronavirus pandemic has severely impacted sales across all its brands.
The high street giant owns several popular firms such as Topshop, Burton and Dorothy Perkins.
Thus, all of these outlets will be affected and approximately 13000 jobs are at
risk now. Nonetheless, as the company advanced in a statement, no redundancies
will be announced immediately. It has hired administrators from Deloitte
to review the situation and it will keep trading while experts will try to work
out the best solution possible by considering all the options available to the
group. Additionally, customers do not have to worry about orders placed on
Black Friday since they will be processed and items will be delivered.
Currently, Arcadia
is responsible for 444 stores in the UK and 22 overseas. It has 9,294 employees
on furlough. Because of reduced sales due to the pandemic, the high street
giant has found itself in huge debts. For instance, it owes money to its
landlords and to clothing suppliers. Thanks to the administration, the firm will
be able to breathe a sigh of relief and escape its creditors for a little
while.
Arcadia’s brand will keep trading while in administration © Royalty-free image
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