Arcadia owner Sir Philip Green wants to borrow £50m against one of his fashion group’s new distribution centres as his stable of brands fights for survival.
The fashion group, which owns brands such as Topshop, Miss Selfridge and Burton, has approached banks and hedge funds about borrowing some £50m against its new distribution centre in Daventry, Northamptonshire, according to Sky News.
The funding would go towards seeing the group through the ongoing coronavirus crisis, which has seen it forced to close all 550 of its stores.
The centre in Daventry only opened last year and is a key part of Topshop’s logistics operations.
While it is owned by Arcadia, Philip Green’s wife Lady Tina Green is the ultimate owner and has security over it. She reportedly agreed to subordinate her debt position to allow Arcadia to borrow against the distribution centre last year.
The ailing high street fashion chain is fighting for its survival, after last week furloughing 14,500 staff under the government’s emergency job retention scheme.
Arcadia senior staff have also taken salary cuts between 25% and 50% during the ongoing epidemic, while group chief executive Ian Grabiner has elected to take no salary or benefits for the period.
The group’s brands will continue to trade online, but at a “reduced capacity as part of an implementation of strict safety measures” put in place to protect staff.
It is also being thought to be in the process of considering permanently closing some stores across its network beyond those earmarked for closure in last year’s CVA.
1 Reader's comment