The disintegration of Philip Green’s empire begins when Australian retailer City Chic closes 90-year-old Evans fashion brand for £ 23 million
The dissolution of Sir Philip Green’s Arcadia empire began with the sale of 90-year-old fashion brand Evans for £ 23 million.
Arcadia – which also includes Topshop, Dorothy Perkins, Miss Selfridge, Wallis, and Burton – rushed into administration earlier this month.
The collapse leading up to Christmas marked the demise of Green’s once powerful high street empire and put 13,000 jobs at risk.
High Street Misery: Sir Philip Green (pictured with supermodel Kate Moss) saw his Arcadia empire tumble into administration earlier this month
A small number of jobs were saved after Australia-listed retailer City Chic bought the Evans brand and its online business.
Five stand-alone stores with 25 employees will be closed, and around 100 Evans franchises and outlets shared with other Arcadia brands like Topshop and Dorothy Perkins will be closed or used for other purposes.
Evans, which sells women’s clothing in sizes 14 to 32, had sales of £ 26 million through August 2020 through its website and wholesale store.
The deal, due tomorrow, is the first piece of Arcadia to be sold after taking office.
The contract signed with Evans suggests that hundreds of Arcadia’s 500 stores could close due to the administration. If the brands are sold to online-only retailers and stores are closed, thousands of jobs can be lost.
City Chic’s bosses reached out to Arcadia before it fell into management on December 2nd, allowing a deal to be closed quickly.
The Australian brand also specializes in plus size womenswear, shoes and accessories and has stores in Australia and New Zealand, as well as a wholesale business in Europe, the US and the UK.
Superdry boss warns of rates
Superdry boss Julian Dunkerton (pictured) said the recent Tier 4 restrictions were “devastating”.
Superdry’s boss has called for a reform of the outdated business tariff system so that the high street can be brought back to life after the coronavirus pandemic.
Julian Dunkerton (pictured) said the recent tier four restrictions are “devastating” to retailers whose stores have been closed for nearly four months this year.
But while businesses are suffering, online sellers like Amazon and Boohoo have boomed, causing anger over the “unfair” business rate regime.
Dunkerton, 55, told the BBC, “I think a lot of retailers are really going to have problems.
“You cannot tax at the same level unless the playing field is level.”
Arcadia’s administrators, Deloitte, continue to search for buyers for the remaining brands. Topshop, the jewel of the Arcadia brand, is expected to receive bids of up to £ 200 million, while the entire stall could raise £ 400 million.
Frasers Group and Next are among around 30 potential bidders. Primark, Marks & Spencer and Boohoo are expected to view their positions as yesterday’s deadline for submitting bids for the first round.
However, the high street faces greater uncertainty as ministers threaten to maintain closure of Stage Four in the southeast pending the introduction of the vaccine.
UK stores could lose £ 7 billion in sales in the next 14 days due to the closings. Amid the chaos, fears grew for the future of 12,000 employees at Debenhams as a full bailout contract becomes increasingly unlikely.
The Debenhams liquidators are currently conducting a fire sale to vacate an estimated £ 10 million a day, but even that has been disrupted by the Tier 4 restrictions.
* Mike Ashley’s Frasers Group became one of the stock market’s biggest fallers yesterday after issuing a profit warning due to the new Covid rules.
Shares in the chain, which includes House of Fraser, Jack Wills, Evans Cycles and Sports Direct, fell 10.4 percent, or 49.4 pence, to 425.6 pence as bosses condemned the restrictions without warning .
Frasers, which has 990 UK stores, had previously told investors it would increase its profits by 20 to 30 percent compared to £ 287.8 million the previous year.