Coronavirus: Arcadia races to raise £50m to secure immediate future
Sir Philip Green’s Arcadia retail empire is scrambling to raise £50m to secure its future amid the coronavirus crisis, which has forced stores to close indefinitely.
Arcadia, which owns Topshop and Dorothy Perkins, has reportedly approached banks and hedge funds as it seeks to borrow around £50m against its Daventry distribution centre, Sky News reported.
All 550 of Arcadia’s high street stores are closed due to the coronavirus pandemic following a government order for all non-essential retailers to shut.
The retail group is hoping to secure a deal as quickly as possible, the broadcaster reported, citing a potential lender. Arcadia declined to comment.
The distribution site in Northamptonshire is owned by Arcadia, but Sir Philip’s wife Lady Green – who is the overall owner of the group – has security over it.
According to Sky News it was unclear last night whether a deal with a new lender is likely to be agreed.
The company will hold a board meeting today to discuss the impact of coronavirus on the business.
The Sunday Times reported last week that Arcadia could walk away from as many as 550 of its stores this week, serving notice to landlords weeks after it shut its physical stores. Arcadia said that “no decisions have been taken at this time”.
Last week the retailer said it was furloughing 14,500 of its workers after it shut its stores because of the coronavirus pandemic.
The Topshop-owner also said that its board and senior leadership team were taking a salary reduction of between 25 per cent and 50 per cent.
A significantly reduced number of head office employees will continue in their roles to “provide essential functions for the group”, the retailer said.