UK government pledges support for those affected by Arcadia failure
Alok Sharma, the UK's business secretary, has pledged support for those affected by the Arcadia administration filing. In a tweet, rather than in an official announcement, he said that: “I know this will be a worrying time for employees and their families, especially in the run-up to Christmas. The Govt stands ready to support those affected during this difficult period.”
His tweet came ahead of the news about the Debenhams liquidation plan following JD Sports’ decision not to buy the retailer. While he didn’t mention Debenhams, it is to be assumed that the government will also be supporting those affected by its failure. It's unclear whether suppliers will also be able to get government help.
Between Arcadia and Debenhams, 25,000 jobs are at risk and even though Arcadia brand sales are expected and some parts of the Debenhams business might be salvaged, it's thought that the majority of those jobs could go.
Staff affected by other retailer failures could also be looking for extra support in the light of what the business secretary has said, given that retail has been one of the sectors (along with hospitality) that has been hit hardest by the fallout from the coronavirus pandemic.
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