Arcadia is moving fast following the approval of its CVA and it has said it will cut 170 jobs at its HQ. The company is “proposing to make some structural changes in order to support and deliver the turnaround plan.”
Double the number of Arcadia shops expected could close with the axe to fall heavily on Miss Selfridge and Evans, the former to lose its London flagship as it can command a rich rent from other retailers.
Arcadia revealed some details of its long-rumoured CVA plan late Wednesday afternoon with an exit from its US stores and closures in the UK and Ireland that will affect 520 jobs. It will also focus more on digital.
The latest Sunday Times Rich List at the weekend saw Arcadia boss Philip Green falling out of the billionaire’s club with the newspaper assigning no value to his controlling stake in the Arcadia fashion retail empire.
If we could be a fly on any wall, it would be the Arcadia boardroom on Tuesday with the board set to meet to talk about the future of the company’s various fashion chains in the UK and beyond, and its expected CVA.
Budget fashion chain Select is reportedly preparing an administration filing, a move that would put 2,000 jobs on the line. The firm had already entered a CVA to reduce its rent bill and continue operating.
The embattled UK retail industry was dealt another blow on Friday after news emerged that Arcadia is considering a restructuring process which could result in significant store closures and job losses.
Major London landlord Shaftesbury saw its portfolio value rising in the year to September as it shrugged off the wider UK retail downturn due to higher rents and its strength in areas such as Covent Garden and Carnaby.