Close Menu
No.1 in UK for Limited Company Liquidations
UK Liquidators

Insolvency Related News

Latest News from UK Liquidators

Low-Cost Liquidation
100% Confidential
Stop HMRC & Creditor Pressure
Partner-led Service

Arcadia Group Enters Administration, 13,000 Jobs at Risk

By Jon Munnery
1 December 2020

The Arcadia Group has entered administration with its bosses citing the Covid-19 pandemic as a key reason for its financial woes.

Arcadia owns some of the most familiar brands on the UK high street, including Topshop, Topman, Dorothy Perkins, Burton and Miss Selfridge.

No redundancies have been announced in the immediate aftermath of Arcadia’s entry into administration but the future is uncertain for its almost 13,000 employees around the country.

Stores and websites operated by the various Arcadia businesses are expected to continue trading, with most of the group’s shops due to reopen from December 2 after a period of closure made necessary by the coronavirus crisis.

“This is an incredibly sad day for all of our colleagues as well as our suppliers and our many other stakeholders,” Ian Grabiner, Arcadia’s chief executive, has said.

“The impact of the Covid-19 pandemic, including the forced closure of our stores for prolonged periods, has severely impacted on trading across all of our brands,” he noted.

Mr Grabiner said the hope was that Arcadia and its businesses might have been able to “ride out the pandemic and come out fighting on the other side” but those ambitions were thwarted ultimately by “the most difficult trading conditions we have ever experienced”.

There are several hundred shops leased directly by Arcadia companies in the UK and dozens of concessions operated by it within large supermarkets and department stores.

Over a hundred Arcadia shops have been closed permanently in recent years as the group sought to improve its operational position but lockdowns and other challenges over the course of 2020 eventually brought its finances to a critical juncture.

Deloitte representatives have been appointed as administrators at Arcadia, with one of those appointed, Mike Smith, saying the group suffered a “critical funding requirement” recently which effectively forced it into administration.

“It is our intention to continue to trade all of the brands, and we look forward to welcoming customers back into stores when many of them are allowed to reopen,” said Mr Smith, shortly after his appointment.

“We will be rapidly seeking expressions of interest and expect to identify one or more buyers to ensure the future success of the businesses,” he added.

Jonathan Munnery
Partner
Is Liquidation the best option for you?

By completing the test, you will receive:

Your Liabilities & Assets
Types of Liquidation Available
Your Companies Health Risk
Alternatives to Consider
Related Articles
13/01/2021
Record Numbers of Small Firms Could Fold, Says FSB
A record number of small companies could fold over the course of 2021 unless swift action is taken to help them in the coming weeks.
Read more
05/01/2021
Lockdown Grants ‘Won’t Be Enough to Save Some Firms’
The government’s pledge to provide grants in support of businesses affected by the latest lockdown measures in England will not be enough to save many firms across the country.
Read more
16/12/2020
Creditor Voluntary Liquidation Rates Rising But Still Being Held Back for Now
Rates of entry into Creditor Voluntary Liquidation (CVL) increased during November but continue to be held back by the various forms of protection being afforded to businesses by the government.
Read more
Ready to Liquidate?
Express Liquidation Service
Ready to start liquidating today? Complete the form and a member of our team will be in touch.
Please note: By completing this form you are not liquidating your company
Contact the UK Liquidators Team

If you are considering liquidation for your company, taking expert advice at an early stage is crucial. At UK Liquidators, our team of licensed insolvency practitioners are committed to providing limited company directors with the help and advice they need to make an informed decision.

  • Free initial consultation
  • Strictly confidential
  • Fully licensed insolvency practitioners
  • Local office support
  • Named case handler throughout

Looking for immediate support?

Complete the below to get in touch

 
 
 
 
 
100% Free & Confidential Advice