Arcadia suppliers left unsure on payments following administration

Arcadia Group suppliers administration deloitte
Deloitte joint administrators Daniel Butters and Gavin Maher were drafted in on November 30
// Arcadia suppliers not informed whether they will be paid any money owed to them
// Arcadia, which owns Topshop, Burton, and Dorothy Perkins, fell into administration
// The collapse has affected over 13,000 jobs

Arcadia suppliers have reportedly been left in the dark on whether they will receive any money owed to them since the group collapsed into administration last week, affecting over 13,000 jobs.

Deloitte joint administrators Daniel Butters and Gavin Maher were drafted in on November 30 to manage the group, which owns Topshop, Burton, Dorothy Perkins and Evans among others.

One Arcadia supplier said they have had no communication from the group or administrators regarding payments, Drapers reported.


READ MORE: Arcadia Group: What went wrong?


Another Arcadia supplier said they have some invoice debt, but “can’t see us getting that – although you never know”.

A third Arcadia supplier said that they have been told by Deloitte not to deliver any orders, and are not to accept any new orders unless they are authorised by the administrators – but no information regarding payments has been released.

Deloitte told suppliers in a letter that if any orders placed by the company prior to their appointment have not yet been completed, these should not be delivered unless suppliers receive written confirmation from the company with approval from the joint administrators that the goods and services are still required.

Certain creditors have retention of title claim over goods in the company’s possession, the letter added.

Last week, Arcadia’s retailers were reported to be now worth just half their £800 million value, following the administration.

Arcadia is set to be watched closely by rival retailers and private equity groups to see if they can purchase a good deal as the brands are put up for sale.

Arcadia’s brands were valued at £800 million in January by consultancy Brand Finance, with Topshop alone accounting for almost £400 million.

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6 COMMENTS

  1. Running a business is very complex. Most large businesses are limited companies and just like people a company no matter what its size can run out of money, particularly if saddled with large debts.

    • Yep a well known case was a woman who was forced to reduce her profit after the price was agreed because he thought they didnt sell enough well.A deal is a deal right?

  2. Administrator just announcing a take it or leave it deal for suppliers to accept payment of 20% at invoice value against unpaid shipped goods. This is termed as a “goodwill payment”. Confirmation of acceptance required by Friday.

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