Topshop collapse leaves creditors £176m out of pocket

Asos relaunches Topshop online after £295m rescue
Asos's website is now the only place to purchase Topshop items, as Boohoo is reported to be looking into Arcadia's Daventry warehouse.
// Topshop and Topman suppliers heavily affected by demise of Arcadia
// Creditors are owed £219m in total but there are only £42.4m of assets available to pay them
// Administrator Deloitte had estimated in November that £82.2m was owed to creditors

Topshop and Topman creditors are facing losses of £176 million as Sir Philip Green’s Arcadia Group is wound up.

Suppliers based in countries such as China and Turkey and property owners are hit the hardest by the demise of the fashion empire.

Creditors are owed £219 million in total but there are only £42.4 million of assets available to pay them – which means they are likely to miss out on £176 million.


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Gift card holders have also been left £4.5 million out of pocket.

Administrator Deloitte had previously estimated in November that £82.2 million was owed to creditors when Arcadia collapsed.

Meanwhile, supermodel Kate Moss’s talent agency is owed £1000. Moss was one of the first celebrities to launch her own brand at Topshop.

Earlier this month, Topshop, Topman, and Miss Selfridge were sold off to online specialist Asos, while Wallis, Burton and Dorothy Perkins were sold to Boohoo – but stores were not part of the deal.

Hopes are rising that the company’s pension deficit could be closed after the schemes’ trustees received £173 million in cash from a previous agreement it made with the help of the pension regulator.

Nevertheless, it has emerged that the Green family is likely to receive funds from the sale of Topshop as a secured creditors through a company called Aldsworth Equity.

It is owed £50 million relating to an interest-free loan made to the group two years ago and is likely to be paid before any funds are shared with suppliers, landlords and the taxman.

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5 COMMENTS

  1. It’s ironic that Sir Philip Green and his family will still receive £50m in their greasy pockets, whilst Arcadia Group staff seek charity aid. Something wrong with the system.

  2. This is absolutely disgusting. How can he still be pocketing £50 Million when all of the workers are having to claim their redundancy and notice pay from the government! Deloitte’s are treating the staff so poorly, the latest redundancies in head office the people impacted didn’t even receive 24 hours notice. They were told the day before that by 11am the following day they’d be losing their jobs. It is an absolute outrage and a complete and utter failing on the staff. I hope enquiries are opened into SPG and he should most definitely be stripped of his knighthood.

  3. Capitalism! So the Greens are still Sir and Lady, and will receive £50 million while creditors lose out. The Greens are representatives of greedy capitalistic culture and were once revered. They’re a greedy duo.

  4. Corporate governance in the UK needs a complete rethink. The Greens have like others tarnished the reputations of decent business people who struggle and strive to run proper businesses. This is a scandal on par with Robert Maxwell, the knighthood and political clout Green had are also an insult to everyone. Please don’t judge us all by these chancers.

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