Sir Philip Green’s Arcadia Group has finally confirmed plans to shut 23 stores in the UK and Ireland as part of a CVA proposal.
The move would put 520 jobs at risk while all of the retail group’s 11 Topman and Topshop stores in the US are set to either close down or be sold off.
Arcadia said all of its stores in the UK and Ireland will continue to trade as normal until a decision is made on the CVA proposals early next month.
“Against a backdrop of challenging retail headwinds, changing consumer habits and ever-increasing online competition, we have seriously considered all possible strategic options to return the group to a stable financial platform,” Arcadia chief executive Ian Grabiner said.
“This has been a tough but necessary decision for the business.
“We will ensure all potentially affected colleagues are kept fully informed as we seek approval from our creditors on today’s CVA proposals.”
Deloitte partner Daniel Butters said: “Arcadia and its portfolio of iconic fashion brands have faced unprecedented market conditions in recent years, which have significantly impacted the group’s financial performance.
Earlier this week, reports emerged that Arcadia’s like-for-like sales plunged by 7.5 per cent in the year to August 2018, while total sales slumped 10.5 per cent to £1.7 billion.
The majority of Arcadia’s financial decline reportedly stemmed from its flagship fashion retailer Topshop, which saw like-for-like sales plummet by 20 per cent in the lead-up to Christmas.
Arcadia is the parent company of Topshop, Topman, Dorothy Perkins, Burton, Wallis, Evans, Outfit and Miss Selfridge.
The firm has 571 stores and 388 concessions in its UK portfolio, and 1170 shops in 36 countries globally, many of which are department store concessions or franchises.
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