Sir Philip Green’s retail empire Arcadia is reportedly on the verge of collapse, placing around 15,000 jobs at risk.
According to Sky News, the retail group, which owns Topshop, Dorothy Perkins and Burton, could be set to appoint administrators from as early as next week.
An insider told Sky that the move was “inevitable” following failed talks with a group of potential lenders over a £30m rescue package.
Reports also suggest that online fashion retailer Boohoo would be among the potential bidders for parts of the business, particularly its TopShop brand.
Arcadia currently operates over 500 sites, the majority of which are closed due to government restrictions, but which were set to reopen next week once the national lockdown has lifted.
The retail group currently employs around 15,000 people, having already announced 500 head office job cuts earlier this year.
Green bought the group in 2002 for a sum of £850m, later paying a £1.2bn dividend to Arcadia’s registered owner and his wife, Lady Christina.
A CVA was narrowly agreed for the group last year, forcing Green to pledge a packet of assets worth £400m to the company’s pension scheme.
It is the latest in a series of events which highlight the struggles UK retailers face on the highstreet. It comes as JD sports reportedly entered into talks with advisors this week regarding a deal which would see the brand take full control of struggling department store Debenhams.
Retail Sector has contacted Arcadia for comment.