TOPSHOP OWNER IS ON BRINK OF BANKRUPTCY

Arcadia Group Holding, owned by the family of British businessman Philip Green, is one step away from bankruptcy. According to a number of informed sources, the company was unable to obtain a loan of £ 30 million, which means that the chain of fashion stores (Burton, Dorothy Perkins, TopShop, TopMan) will soon come under the control of external administration, and about 15,000 employees may lose jobs.

British analysts point out that the most valuable brands TopShop and TopMan may end up being bought by competitors. The fact is that the sales of goods online, which began to be carried out by Philip Green's stores during the pandemic, were not as successful as the sales of other companies on the market.

The situation could be saved by the end of the lockdown, which is expected by many in early December, but it will be difficult to completely eliminate all the holes in the budget.

The Arcadia group of companies includes more than 500 retail outlets around the world. The stores sell not only TopShop clothing, but also products of other brands, including works of young designers. The main competitors of the brand are the flagships of "fast fashion" Zara and H&M.

Experts remind that Arcadia holding went through a restructuring last year. Then it was associated with cooling interest of the British to the sale of goods in the outlets located on the streets. This time, if the insolvency of the business finds official confirmation, a serious struggle could unfold for the assets of Arcadia.

The most “delicious” piece of business for potential investors may be those stores that have a permit to work under lockdown conditions.

Among the potential candidates to buy the Topshop brand, experts name the Boohoo Group, an online service that sells fashion clothes.

Billionaire Philip Green himself, whose family owns $ 2.3 billion in property, said he would not buy out the unprofitable business. Green once successfully acquired Arcadia Group, having registered the property right through Taveta Investments, registered at his wife's name. Since Green's wife is a citizen of Monaco, this allowed to optimize taxation and save about £ 150 million. Such tax evasion angered the British public, as well as the political establishment.

It might be that Green does not want a repetition of other scandals of past years, including accusations by parliamentarians, who have repeatedly stated how the businessman and his family became "rich." To do this, they used the bankruptcy of the BHS retail chain, which was owned by Green and was sold by him for just £ 1 to Retail Acquisitions Company. It is worth noting that the businessman has a knightly title and may not want to lose it.