// Arcadia administrators Deloitte said Topshop and Topman have failed with gross liabilities of more than £550m
// Sir Philip Green’s retail empire fell into administration under the weight of debts totalling £750m
// Arcadia’s discount brand Outfit failed with gross liabilities of £80m
New documents prepared for Arcadia Group administrators Deloitte have reportedly found that Topshop and Topman have failed with gross liabilities of more than £550 million.
Sir Philip Green’s retail empire fell into administration under the weight of debts totalling £750 million, The Telegraph reported.
Reports prepared by Deloitte at the end of November have revealed the financial state of the retail group.
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Topshop and Topman failed with gross liabilities of more than £550 million, while Arcadia’s discount brand Outfit owed £80 million, according to the filings.
However, the documents were unclear as to whether the weight of debts would affect the 9000 members of its pension scheme.
A detailed listing “does not capture” unsecured amounts owed to the Arcadia retirement fund and unpaid VAT due to HMRC.
It also excludes “a number of intercompany creditors, amounts due under guarantees crystallised by the insolvency” – believed to include amounts owed to companies owned by Green.
Deloitte said it would update creditors, including landlords and suppliers, as it found information, but warned the total amount was expected to be “materially higher” than its current figures.
Creditors to Topshop and Topman are currently £82.2 million out of pocket, with overseas suppliers and property owners hit the hardest.
At least 22 firms are owed between £1 million to £3 million each, including Savills and the owner of Westfield White City.
Green paid his wife Lady Tina Green a £1.2 billion dividend in 2005, three years after buying Arcadia for £850 million.
Lady Green was the ultimate owner of the business pre-administration.
Moreover, online retailer Asos confirmed on Monday it was in exclusive talks to buy the Topshop, Topman, Miss Selfridge and HIIT brands, but has no plans to acquire the stores.
Asos does not have a high street presence, prompting speculation that any deal is unlikely to include saving Arcadia’s vast store estate, leaving the brands trading online only.
In addition, Asos already sells Topshop items on its ecommerce platform.
Administrators have already begun winding down the stores, with more branches expected to shutter by the end of the month.