PHILIP GREEN’S Arcadia Group Reportedly Had A £510m Pension Deficit When It Collapsed according to a financial statement
Sir Philip Green’s fashion retail Arcadia Group Ltd, according to financial documents seen by The Guardian, apparently had a pension deficit of £510m when it collapsed last November.
Creditors were reportedly owed £800m when the company called in administrators, as shown in a statement prepared by Arcadia’s board, which was sent to all creditors this week.
Arcadia was the parent company of high street giants Dorothy Perkins, Top Shop, Miss Selfridge, and Burton, but the pandemic was the final nail in the coffin after many years of struggling with high costs and poor trading.
The statement, at this stage containing only estimated figures, as seen by The Guardian, reportedly confirms that around 1,000 creditors including fashion and shopfitting suppliers, who are owed £163m, are likely to receive only a small portion of the money they are owed, possibly as little as one per cent.
The news comes at a time when the administrators are about to begin consultations on the closure of three of Arcadia’s distribution centres, which can lead to more than 1,000 job losses, including at the historic Burton site in Leeds, which opened back in 1922, where 400 jobs are at risk, and in the day, used to produce 30,000 suits a week, and employed 10,000 people.
Jake O’Malley, who represents the workers union, GMB, at the site, said, “A century of history and hundreds of good jobs down the pan while Philip Green is living it up on his private yacht and the administrators pick the bones of the business clean. GMB will fight tooth and nail to make sure workers get what they deserve from this mess”.
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