Jan 27, 2021
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Arcadia had debts of £750m as it collapsed

Jan 27, 2021

The size of debt that forced Arcadia into administration was revealed Wednesday: £750 million. However, the group’s administrator Deloitte warned the final figure was expected to be "materially higher”.

photo: Nigel Taylor

It was the group’s star Topshop and brother brand Topman that did most of the damage, failing with gross liabilities of more than £550 million, according to filings. Meanwhile discount brand Outfit also owed £80m, according to analysis sent to creditors and seen by The Telegraph.

Creditors to Topshop and Topman are owed £82.2m with overseas suppliers and property owners hit the hardest. At least 22 firms are owed between £1 million to £3 million each, including property giants Savills and Unibail-Rodamco-Westfield, owner of the Westfield White City shopping mall in London.

However, it has yet to be revealed how much Sir Philip Green’s retail empire collapse will affect the 9,000 members of its pension scheme or how much is owed to HM Revenue & Customs and from unpaid VAT.

It also excludes "a number of intercompany creditors, amounts due under guarantees crystallised by the insolvency”, understood to include amounts owed to companies owned by Sir Philip and his family, the report says. Arcadia called in Deloitte last month.

Deloitte also said it would update creditors, including landlords and suppliers, as it gathered further information.

Earlier in the week, online fashion retailer Asos confirmed it was in exclusive talks to buy the Topshop, Topman Miss Selfridge and HIIT brands.

However, it has no plans to acquire any of the stores, putting the majority of its 13,000 workforce at risk.

Administrators have already begun winding down the stores, with more units expected to be closed permanently by the end of the month, Deloitte said. 

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