The fall of the retail empire: Arcadia Group filing for bankruptcy

Photo by: thinkretail | Creative Commons

The British retail company, Arcadia, was put in bankruptcy protection on Monday which placed 13,000 jobs at risk due to the COVID-19 pandemic.

According to CNN Business, this move ought to protect the company from creditors while a buyer is soughted for all the parts of the company.

Arcadia Group is a British multinational retailing company run by Philipp Green for 18 years. It owns high street clothing retailers like Burton, Dorothy Perkins, Evans, Miss Selfridge and Topshop.

Photo by: Slimmer_jimmer | Creative Commons

England is in a four-week lockdown that has forced the closure of all shops selling items viewed as non-essential. The lockdown expires on December 2 and shops will be allowed to reopen.

Ian Grabiner, Arcadia’s chief executive, said: “This is an incredibly sad day for all of our colleagues as well as our suppliers and our many other stakeholders. The impact of the Covid-19 pandemic including the forced closure of our stores for prolonged periods has severely impacted on trading across all of our brands.”

CNBC analysyts say that COVID-19 is not the sole reason for the company’s bankrupty. Arcadia had been losing in the competition with cheaper retailers like H&M and Primark.

Moreover, the situation was worsened by Green’s poor financial administration and lavish spendings.

In a statement ruled by Deloitte, the company has entered administration. According to the statement, there are no redundancies to be announced on Monday and stores would continue to operate as usual.

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Words: Chinara Sadikhova | Subbing: Dina Nazari

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