Arcadia collapses into administration with 13,000 jobs at risk – BBC News

it's been confirmed that more than thirteen thousand jobs are at risk at the retail empire arcadia which includes topshop burton and dorothy perkins which has gone into administration this evening arcadia had been seeking a new injection of cash following lost sales because of the pandemic but a former boss of topshop jane shepherdson has told the bbc that the group's problems go back much further than the pandemic and she alleged that sir philip green arcadia's chairman had failed to invest in his retail empire and had made its downfall inevitable more details from our business editor simon jack in his pomp a fashion emperor who dominated the high street and didn't mind flaunting the vast wealth it brought him lavish parties attended by the rich powerful and famous a description he felt comfortable with himself the empire was full of household names that customers of all ages would recognize tonight that empire has collapsed into administration huge unemployment the woman credited with building the top shop brand explains where it all went wrong phillips overriding concern was to buy something as cheaply as he could possibly buy it and then to sell it for as much as he could get for it the online players such as asos and boohoo don't have the cost space of the stores they don't have to pay for staffing in their stores all they have is their online presence they're much better at it they've invested a huge amount of money in it and they have a much better connection with their customers the list of retail failures is a long one but arcadia is the biggest for years there are 444 stores and hundreds more concessions within other stores there are 13 000 workers whose jobs are at risk and an estimated 350 million pound hole in the pension scheme this is or was the jewel in a crown that in truth slipped many years ago once a powerhouse of fashion retail led by the king of the high street now a business in ruins led by a man considered the unacceptable face of capitalism but this is not about one person this tonight is about the thirteen 000 people who are facing a very uncertain christmas and thousands more in a very troubled high street retail sector simon here thanks so much for talking to us today i spoke to one arcadia worker who didn't want to be identified who said the uncertainty had come at the worst possible time a lot of us are feeling a bit anxious because we don't know the full extent about what's happening ourselves for us it's about money around christmas time bills have to go out we don't know if we can afford stuff for christmas we're worried about what will happen to our pension schemes will we still get paid if we're in administration tonight sir philip is here on his 100 million pound yacht in monaco where his wife is resident and who received a 1.2 billion pound tax-free dividend from the business in 2005.

There is another twist debenhams makes money from renting store space to arcadia brands arcadia's collapse could scupper a rescue of the department store by jd sports another 12 000 jobs at risk the pandemic has been brutal to businesses with underlying health issues suddenly you've had covid which has left you with a sort of perfect storm in retail and those retailers who didn't move on during that perfect storm are the ones who are going to suffer and die and that's what's happening to arcadia but they're not alone there are other retailers in a perilous position as we stand today stores are open in scotland and will open in england on wednesday as administrators try and sell off christmas stock and maybe some bits of the business uh simon's with me now let's talk about the future of these big brands and indeed what happens to customers who've got orders in right now well the i've got the administrators letter here they're saying no redundancies are being made at the moment all online orders made over the black friday weekend will be honored and as i said they're trading the stores will reopen but beyond that it's very unclear there's a lot of industry chatter that some of the online brands might want to snap up the top shops topmans of this world but it's the brands they want not the physical stalls and that's where the jobs are so it's a very uncertain outlook you've talked to civil green many times over the years you've mentioned his whereabouts there i'm just wondering what you think is going through his mind and has there been a peep out of him today i haven't heard from him today uh listen um for all his abrasive nature he's actually more sensitive or thin thin skins than people might even explain his behavior thin skin than people think so he will feel this keenly but that will be cold comfort to the people who are facing an uncertain future is there another act in the philip green retail drama i don't know he's very stubborn he's very slow to change as we've seen the future of retail is about technology i don't think he's got the skill set that modern retail requires simon many thanks again simon jack our business editor

As found on YouTube

Add Comment