Arcadia Group

History

2020: Statement for bankruptcy

At the end of November, 2020 the British retailer Arcadia Group owning such brands of clothes as Topshop, Topman, Burton and Dorothy Perkins declared bankruptcy. It will become the largest for business of Britain since the beginning of a pandemic of a coronavirus of COVID-19.

As a result of bankruptcy of Arcadia Group can dismiss about 13 thousand employees. The company started the procedure after a failure of negotiations on the credit in the amount of £30 million. The Deloitte auditing company is appointed by the administrator of Arcadia Group and will look for potential buyers on brands of the retailer now.

It is extremely sad day for all our colleagues, suppliers and numerous partners. COVID-19 pandemic effects, including forced closing of our shops for a long time, had the strongest impact on sales of all our brands — the CEO of Arcadia Group Ian Grabiner said.

Arcadia Group announced bankruptcy

By the end of November, 2020 the clothes and accessories under the brands belonging to Arcadia Group can be purchased in 444 shops in the territory of Great Britain and in 22 — abroad. Three outlets of Topshop and Topman work in Moscow and St. Petersburg. Online platforms will also function, and partners will receive the orders.

At the end of November, 2020 Arcadia Group recognized "material influence the" of restrictive measures connected with spread of a coronavirus. According to analysts of Springboard, in November when in Britain a part of shops was closed again, attendance of shopping centers dropped by 60% in comparison with 2019. Since February online sales in general grew by 45% while demand for clothes (offline and online) decreased by 14%, the Office for National Statistics of Great Britain adds.

In 2019 lessors agreed to lower the rent for Arcadia Group shops that it could carry out restructuring. But from March to June, 2020 Arcadia Group shops were closed because of a pandemic.^[1]

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