Arcadia is said to be in talks on a £ 30million loan
Sir Philip Green’s Arcadia is said to be seeking tens of millions of pounds in funding from lenders as it continues to fight the impact of Covid-19.
The group, whose portfolio includes Topshop, Burton and Dorothy Perkins, has approached several potential lenders to borrow around £ 30million, Sky News reports.
Discussions with a number of parties are said to be ongoing, with a source close to one of the parties saying over the weekend that she believes a deal could be “close,” according to Sky.
An Arcadia spokesperson said media reports claiming the company was approaching an administration were not true. “Obviously the second UK lockdown presents an additional challenge for all retailers and we are taking all appropriate measures to protect our employees and other stakeholders from its consequences,” the spokesperson said.
“All of our stores in Wales, Scotland and Northern Ireland have now reopened, and we continue to do business online through our own channels as well as through those of our partners.”
Like many fashion retailers, Arcadia has been hit hard in recent months by plummeting store closings and footfall, and has taken a number of steps to mitigate the impact.
In July, the company announced it would cut about 500 jobs from its 2,500 head office employees.
An Arcadia spokesperson said at the time: “Due to the impact of Covid-19 on our business, including the closure for more than three months of all of our stores and headquarters, today we have He informed staff of the need to restructure our headquarters. “
While the group’s stores in Scotland, Wales and Northern Ireland are currently open, the majority of its more than 500 stores are currently closed amid England’s second nationwide lockdown which is expected to end in early December.
Arcadia has put the majority of its staff on leave during the pandemic and cut the salary of its management team by 25 to 50% to cut costs.
The group also put up for sale the old Burton headquarters in central London for around £ 80million, the Sunday Times reported in September.
Arcadia averted the collapse in June 2019 by narrowly securing approval from creditors to launch a Voluntary Company Agreement (CVA).
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