Arcadia collapsed under debts of £750m, Deloitte says

Topshop Topman Sir Philip Green Deloitte
Creditors to Topshop and Topman are currently £82.2m out of pocket
// 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.

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20 COMMENTS

  1. Leave Sir Philip alone.
    Do your business Mr Administrator as no doubt this is such a lucrative venture for you, others people’s misery.
    Do not go after Philip Green, he may be loud but he is a good man. The British Establishment dont like Jews.
    They hate Jewish Knighthoods even more.
    Philip is both therefore a target.
    Stay away and let him and Lady Green live in peace

  2. Allways amazes me how administrators can make so much money out of these things,yet the same accountancy companies do annual accounts and filings for companies but surely have a duty to report when a company is insolvent not allowing to keep trading and building more debt so the unsecured creditors get nothing.

  3. Philip Green has done what he does best, created a huge debt for the company by using its bank to borrow the money to buy it and then pocketing the value by selling its assets. he should be put in prison for all the damage and jobs he has cost whilst making himself rich.
    What did he get his knighthood for? …services to retail??? i don’t think so.

  4. When are governments going to crack down on these peopl. All these so called celebrities, footballers etc not paying tax Google etc not paying tax and taking money out of the country while people are homeless hungry and left without pensions

  5. The film Greed was spot on. Despite large movie houses not promoting the film, still worth a look at this gross misconduct. Green is always using other people’s money.

  6. There’s a trend here… online buys High Street fascias. Boohoo buys Debenhams… Asos buys Arcadia…
    Just shows the High Street brands have a percieved value, but the cost of bricks and mortar is prohibitive. Business rates??? Go figure!

    • Yes and the rents. They aren’t on turnover. Debenhams is making losses not only in the stores, they were in the wrong places too large with short opening times. We don’t need massive shops we need more leisure activities

  7. Leave Philip Green Alone what a load of bull Sh– talk, and whst about the workers and loosing there redundancy after years of work for Acadia, my e Mr Green should have is big boats and property sold to pay these workers who worked day in day out for his brands, but now its all for nothing
    You comment stinks..

  8. Can we expect to see Mr Green facing a hearing into his incompetence at losing 2 huge businesses within 5 years,BHS and Arcadia?Or in other terms,putting about 20000 people out of jobs?I wouldnt hold your breath.Where is he anyway,hiding out in a cave somewhere?He even timed going into administration the day before the law would have forced him to pay all his taxes to HMRC…Justice?

  9. Why has the Pension Protection not stepped in. When BHS went under we were told they would look at securing funds from his portfolio. He has defaulted 100 million pounds payment against the cva last year. As a pensioner paid by Arcadia I have have lost money. CRIMINAL ACTION should be taken against Sir Shifty . And assets seized
    .

  10. Green actually a very nice guy very misunderstood a retailing genius who generated a huge amount of wealth and jobs. One of the best advertisements for the capitalist system, where financial rewards are a reflection of someone’s contribution to society. Proud to be a subject of a land which made him LORD.

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