Clothing giant Arcadia, which owns brands including Topshop and Dorothy Perkins, is preparing to close a huge number of its 550 stores as the coronavirus lockdown tears through the high street, it has been reported.
Arcadia, owned by Sir Philip Green who has an estimated personal fortune of £950million, has called in accountants from Deloitte as it is ‘on its knees’, according to the Sunday Times.
Department store giant Debenhams is also sliding towards possible collapse putting 22,000 jobs at risk, as COVID-19 keeps customers at home.
Arcadia, which owns brands including Topshop, is reportedly preparing to close a huge number of its 550 stores due to coronavirus (Pictured: Its store on Oxford Street, London)
Debenhams is also sliding towards possible collapse at it calls in accountancy firm KPMG, putting 22,000 jobs at risk
Arcadia is owned by Sir Philip Green, pictured above in 2014, who has an estimated personal fortune of £950million
Arcadia has already furloughed 14,500 out of its 16,500 members of staff, cancelled orders from suppliers and halted payments to landlords as it struggles to stay afloat.
Brands in the company’s stable also include Miss Selfridge, Burton and Wallis.
Debenhams has called in accountancy firm KPMG in a bid to make ‘contingency plans’ to secure its future.
The retailer has also told suppliers to expect delayed payments, and requested a rental holiday from landlords.
Carluccio’s has also filed for administration, with the owner saying it has been mothballed until the coronavirus lockdown is lifted
High street chain BrightHouse has also gone into administration during the lockdown
A spokesman said: ‘Like all retailers, Debenhams is making contingency plans reflecting the extraordinary current circumstances.
‘Our owners and lenders remain highly supportive and whatever actions we may take will be with a view to protecting the business during the current situation.
‘While our stores remain closed in line with government guidance, and the majority of our store-facing colleagues have been furloughed, our website continues to trade and we are accepting customer orders, gift cards and returns.’
Rent-to-own retailer BrightHouse and Italian restaurant chain Carluccio’s collapsed into administration last week, putting 4,400 jobs at risk, as the lockdown bit into businesses chances of survival.
Carluccio’s owner, Geoff Rowley, said he was hoping to mothball the business under the government scheme which would provide employees with 80 per cent of their wages.
Accountancy groups Grant Thornton, Chris Laverty, Andrew Charters and Sarah O’Toole have been appointed as administrators for BrightHouse.
They said in a statement that the business will not be making new loans, and that existing clients should continue to make payments as normal.
Arcadia said in a statement: ‘No decisions have been taken at this time.’