Arcadia had initially announced plans to close 23 stores across the UK and Ireland as part of a major restructure, with Topshop, Burton and Dorothy Perkins among brands that will disappear across the UK high street. But now it has emerged 25 more stores will go on top of this original list, under separate insolvency proceedings, with Miss Selfirdge and Evans bearing the brunt of the closures. Arcadia are now awaiting for the approval from creditors for a company voluntary arrangement (CVA) to be given the green light, which will also see rent being slashed at another 194 outlets to further reduce costs. Directors of the group are due to meet on June 5, where 75 percent of creditors will need to approve the store closures.
The agreement proposal, as reported by The Independent, states: “Due to the intensely competitive environment, [Evans and Miss Selfridge] will reduce their retail store portfolio significantly in the short term.”
As part of the latest list of store cuts, the Miss Selfridge outlet in London’s Oxford Street will close its doors for good this summer.
The Oxford Street store has around 50 members of staff.
It is believed Miss Selfridge will move into the basement of Topshop next door, although it is not clear how many members of staff will be kept on.
The empty store will then be rented out to a new retailer.
One member of staff told The Guardian: “It is quite a big thing for us.
“It’s one of our few profit-making stores but Green has said he can make more money by renting it out.”
Arcadia said it “will make every effort possible to redeploy remaining staff across other Arcadia Group locations within London”.
The group announced last week it will also say goodbye to its portfolio of 11 Topshop and Topman stores in the United States.
As part of the CVA to shut the original list of 23 stores, Lady Green, wife of Sir Philip and ultimate owner of Arcadia, has offered landlords a 20 percent stake of any proceeds if the group is eventually sold.
Lady Green will also inject £50million of equity into the business, on top of £50million she had already loaned the company.
Arcadia chief executive Ian Grabiner said last week: “Against a backdrop of challenging retail headwinds, changing consumer habits and ever-increasing online competition, we have seriously considered all possible strategic options to return the group to a stable financial platform.
“This has been a tough but necessary decision for the business.
“We will ensure all potentially affected colleagues are kept fully informed as we seek approval from our creditors on today’s CVA proposals.”
Arcadia Group has been contacted for comment by Express.co.uk.
UK AND IRELAND ARCADIA GROUP CLOSURES ANNOUNCED LAST WEEK:
Aberdeen (Dorothy Perkins and Burton)
Ashton-under-Lyne (Topshop and Topman)
Bedford (Topshop and Topman)
Bluewater, Kent (Miss Selfridge)
Cork (Dorothy Perkins and Evans)
Dublin, St Stephen’s Green (Topshop and Miss Selfridge)
Dublin, Jervis (Topshop and Topman)
Dublin, Henry Street (Evans and Wallis)
Dublin, Liffey Valley (Wallis)
Fareham (Topshop and Topman)
Galway (Miss Selfridge)
Glasgow, Buchanan Street (Burton and Topman)
Luton (Topshop and Topman)
Newcastle, Northumberland Street (Outfit)
Nuneaton (Topshop and Topman)
Reading (Dorothy Perkins and Burton)
Salisbury (Topshop and Topman)
Southend (Miss Selfridge)
Stirling (Dorothy Perkins and Burton)
Swindon (Miss Selfridge, Wallis, Evans)
Swindon (Dorothy Perkins and Burton)
York (Dorothy Perkins and Burton)