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Debenhams and Arcadia Group could soon be under American ownership

By Don-Alvin Adegeest

14 Dec 2020

Retail

Authentic Brands, the parent company that bought Barneys and Forever 21 when they collapsed into bankruptcy, is eyeing British fashion giants Arcadia Group and Debenhams.

A report by the Telegraph said the American retail giant is in discussions with both administrators, which sees the UK businesses continue to trade despite the risk of 25,000 jobs if a buyout fails.

The well-lubricated Authentic Brands is in a healthy position to afford to buy both chains, said the report, which has an annual turnover of 15 billion dollars before the pandemic.

According to the Telegraph “Debenhams faces the more urgent crisis, after it collapsed in April for the second time in a year and failed over months to agree a rescue with bidders including Frasers Group and its sportswear rival JD Sports. It is now in line to be liquidated after Christmas if a rescue that would deliver better returns for creditors cannot be agreed. Meanwhile Deloitte this weekend is in the early stages of attempting to extract the best return possible from Arcadia. First-round bids for all or part of the business are due by Friday. City sources said administrators aim to complete deals by February.”

In the UK Primark parent Associated Foods, as well as Boohoo, Frasers Group, Marks & Spencer, Next and River Island are all thought to be part of a list of potential suitors.

Photo Wikimedia Commons license free; Article source: The Daily Telegraph