Sir Philip Green’s Arcadia to close 23 stores and axe 520 jobs

More trouble on the high street

Sir Philip Green’s Arcadia Group is the latest high street big name to be hit by crisis enveloping the retail sector.

The group, whose brands include Topshop, Burton and Dorothy Perkins is to close 23 stores.

The closures include the Topshop in Ashton in Greater Manchester.

Around 520 jobs are set to go and there are also fears that staff pension scheme is under threat.

A host of retailers have been forced into similar actions in recent months.

Both House of Fraser and Debenhams have gone into administration and there have been thousands of job cuts in the retail sector.

As well as the closures rents will be cut at the remaining 194 stores across the UK.

Sir Philip’s wife, Lady Tina Green, who is the main shareholder of Arcadia, will invest £50m in the company.

However, the pensions regulator has expressed doubts that the rescue package will “adequately protect” the pensions of employees.

The regulator’s support is crucial in order for a Company Voluntary Arrangement (CVA) to be approved.

Ian Grabiner, chief executive of Arcadia Group, called the steps “tough but necessary” to save the business.

Landlords and other creditors will have to agree to the proposals which will be put to them on 5 June.

The plan must also be approved by the company’s pension trustees, who are also being offered a new deal.

The British Property Federation has said too many companies are using CVAs to avoid rent.

The Arcadia group has 1,170 shops in 36 countries, although the majority are concessions or franchises.

It has 566 locations in the UK and Ireland and employs 18,000 people.

Dave Gill – Usdaw National Officer said: “Unfortunately the pursuit of a CVA is all too common in modern retailing, as the high street crisis continues to blight town centres. It is a distressing time for staff, who are often not kept informed by the company and left on the sidelines waiting to hear their fate through media reports.

“Arcadia staff deserve to be treated with dignity and respect, with a seat at the table where the future of their jobs will be decided. That did not happen in BHS, where the 11,000 staff were treated appallingly by the employer and it was only when the administrator got involved that a line of communication was opened with the union, but by then it was too late.

“Usdaw is the trade union for Arcadia staff and we urge Philip Green to end his refusal to speak to us. The staff have a lot of experience and expertise to offer to help turn the business around before it is too late.

“The best retailers do engage with their employees through an independent trade union. Let’s not have another BHS style scandal that would further damage Philip Green’s reputation and question his integrity.”

Aberdeen Dorothy Perkins, Burton
Ashton under Lyne Topshop, Topman
Bedford Topshop, Topman
Bluewater Miss Selfridge
Cheshunt Outfit
Cork Dorothy Perkins, Evans
Dublin Evans, Wallis
Dublin Topshop, Miss Selfridge
Dublin Topshop, Topman
Dublin Wallis
Fareham Topshop, Topman
Galway Miss Selfridge
Glasgow Burton, Topman
Luton Topshop, Topman
Newcastle upon Tyne Outfit
Nuneaton Topshop, Topman
Reading Dorothy Perkins, Burton
Salisbury Topshop, Topman
Southend Miss Selfridge
Stirling Dorothy Perkins, Burton
Swindon Dorothy Perkins, Burton
Swindon Miss Selfridge, Wallis, Evans
York Burton

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