Next pulls out of race to buy Arcadia Group from administration

Next Sir Philip Green Arcadia
Arcadia fell into administration last year, putting 13,000 jobs at risk across 500 outlets
// Next withdraws from race to purchase Arcadia Group from administration
// The fashion retailer said it was “unable to meet the price expectations of the vendor”
// Administrators Deloitte have been looking for buyers for some or all of Arcadia

Next has pulled out of the race to acquire Sir Philip Green’s Arcadia Group from administration, clearing the way for Authentic Brands, G-III Apparel and Shein to place their final offers.

A consortium comprising Next and US investment firm Davidson Kempner Capital Management, have withdrawn from a process being run by Arcadia Group’s administrator.

Next said it was “unable to meet the price expectations of the vendor”.


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The news of Next and Davidson Kempner’s interest in Green’s empire was reported over the weekend, which would have seen Next take a minority stake.

Arcadia fell into administration last year, putting 13,000 jobs at risk across 500 outlets.

Earlier this week, Arcadia – which also owns Dorothy Perkins, Miss Selfridge and Burton – said it will close more than two dozen stores by the end of the month, with 700 staff expected to lose their jobs.

Interested parties had been asked to submit bids for the whole company or individual brands at the start of this week.

Administrators Deloitte have been looking for buyers for some or all of Arcadia, after a slump in sales caused by the Covid-19 pandemic resulted in its collapse.

The demise of the empire comes after the collapse of retailers such as Cath Kidston, Oasis and Warehouse and Debenhams.

Topshop is considered Arcadia’s flagship brand, and a sale could fetch about £200 million.

Evans, its plus-size clothing brand, has already been sold to City Chic Collective, an Australian retailer, for £23 million.

Shein has tabled an offer worth well over £300 million for Topshop and Topman.

Other bidders include Boohoo, Asos and Authentic Brands Group, which is working with JD Sports.

It has been estimated that Arcadia’s pension fund has a £350 million deficit and Green is facing renewed pressure to plug it with his own money, just as he did so with the BHS pension deficit after it collapsed in 2016.

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3 COMMENTS

  1. Shame that Next are not buying Arcadia but I hope the retail network is kept though I suspect it will be much smaller than it is now.

    If it’s an online provider it’s 13k jobs gone and yet more empty shops. There is an oversupply of empty shops now with a vacancy rate of 1 in 3 I would argue in many places since the pandemic.

    Hope JD buy them. But lets see. With Debenhams probably going later this year there will be a huge closure of Arcadia outlets where Debenhams have shut and where Arcadia closed branches to move in to Debenhams. Not sure how that works really.

    Don’t think Arcadia is worth £300m as the brands bar Top Shop /Man are tired and lacking in USP and most of the target market is middle age or generation Y.

    Millennials like their Zara and H and M and Primark. Best of luck though.

  2. Top Shop and Miss Selfridge all shutting down I think. Middlesborough Outfit has gone but more importantly Top Shop/ Man and Miss Selfridge branches cleared of stock to be sold online.

    I don’t think they are going to be branch based and if they are it will be a small retail network.
    My feeling is it’s all online for Arcadia. That’s sad for the British High Street because DP and Burton are heritage brands, so is Miss Selfridge which was part of Selfridges originally and so is Wallis. All I would add were Sears brands which Green asset stripped and made money from.

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