Arcadia reportedly in talks over 30 million pound loan

Sir Philip Green’s Arcadia is reportedly seeking tens of millions of pounds in funding from lenders as it continues to grapple with the impact of Covid-19.

The group, whose portfolio includes Topshop, Burton and Dorothy Perkins, has approached several potential lenders about borrowing around 30 million pounds, Sky News reports.

Talks with a number of parties are reportedly ongoing, with a source close to one of the parties saying this weekend they think an agreement could be “close”, according to Sky.

An Arcadia spokesperson said media reports claiming the company was nearing an administration were not true. “Clearly, the second UK lockdown presents a further challenge for all retailers and we are taking all appropriate steps to protect our employees and other stakeholders from its consequences,” the spokesperson said.

“All our stores in Wales, Scotland and Northern Ireland have now reopened, and we are continuing to trade online through our own channels as well as through those of our partners.”

Like many fashion retailers, Arcadia has been hard hit in recent months by store closures and plummeting footfall, and has taken a number of measures to mitigate the impact.

In July, the business announced it would be cutting around 500 jobs from its 2,500-strong head office workforce.

An Arcadia spokesperson said at the time: “Due to the impact of Covid-19 on our business including the closure for over three months of all our stores and head offices, we have today informed staff of the need to restructure our head offices.”

While the group’s stores in Scotland, Wales and Northern Ireland are currently open, the majority of its more than 500 stores are currently closed amid England’s second national lockdown which is set to end at the beginning of December.

Arcadia furloughed the majority of its staff during the pandemic and cut the pay of its senior leadership team by between 25 - 50 percent to save costs.

The group also put Burton's former headquarters in central London up for sale for about 80 million pounds, The Sunday Times reported in September.

Arcadia avoided collapse in June 2019 when it narrowly secured creditors' approval to launch a company voluntary arrangement (CVA).

Photo credit: FashionUnited