Arcadia retail empire ‘collapsed with £750m debts’

Sir Philip Green’s Arcadia retail empire collapsed into administration under the weight of a £750 million debt pile, according to reports.

The Topshop and Dorothy Perkins owner slumped into insolvency last month after becoming the latest high street firm battered by the pandemic, putting 13,000 jobs at risk.

Reports by administrators Deloitte show Topshop and Topman failed with gross liabilities of more than £550 million, according to the Daily Telegraph.

It said an analysis sent to creditors also show its discount brand Outfit owed around £80 million.

Administrators last week confirmed the closure of all 21 Outfit stores, alongside a further 10 shops for other Arcadia brands, in a move which will impact more than 700 jobs.

Outfit shopper
Outfit shopper

However, the filing provided little clarity on how the collapse of the group will affect the 9,000 members of its pension scheme and how much the taxman is out of pocket.

The report said Deloitte is expected to update creditors, including landlords and suppliers, as it gathers further information, but warned the total amount is expected to be materially higher than its current calculations.

Creditors are reportedly £82.2 million out of pocket so far, with at least 22 firms owed between £1 million and £3 million each.

Deloitte said the creditors’ document would be available to the public on Companies House shortly.

On Monday, online fashion giant Asos confirmed it is in exclusive talks with administrators to buy Topshop, Topman, Miss Selfridge and HIIT.