Arcadia Group on edge of collapse

aVdub

Distinguished Member
The group behind Topshop, Miss Selfridge, Dorothy Perkins and Burton is expected to appoint administrators in the coming days

Covid-19 obviously did not help and did hear on the news that it was heading into the darkness long before this pandemic arrived.

Personally I couldn't give a stuff about its owner, but am really feeling it for the possible 15,000 jobs that could be affected.




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Delvey

Distinguished Member
Pretty disgusting how the BBC has been speculating all weekend on this as well. It seems they do not realise the extra mental strain it is putting on the Arcadia groups staff
 

Tempest

Distinguished Member
I noticed this in the news and must say I'm 100% not a fan on this type of thing, which is part of BIG business these days.
Why does one group own / have enough money to own, such a large range of companies?
Do I need to assume the possible simple answer?
They get clothing etc made dirt cheap by almost slave workers in poor countries, put on a MASSIVE mark-up to shoppers, generate so much profit that then can, over time go around and buy up a whole range of companies as a group.
Then when shoppers stop coming in, due to whatever reason, they realize they are not going to be able to make all this money for an amount of time, then either threaten or do close areas of their 'shopping empire' down, ready to build it back up again when better times come back around.
Yes/No?
 
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stblob

Well-known Member
So he needs a £30m loan but himself + wife worth nearly £1b? Hope he's chilling nicely on his nice boat in Monaco.
 

OneEyedStuart

Distinguished Member
Heart goes out to all the employees and those in the supply chain for these group of companies. As for the owner I have no time for him... wonder if the pension pot for the affected companies is in one piece this time?
 

WeeScottishLass

Distinguished Member
Did he not get in trouble a few years ago?

I seem to remember something similar and there was uproar coz he was chilling on his boat somewhere hot and without a care in the world for all his workers.
 

stblob

Well-known Member
Did he not get in trouble a few years ago?

I seem to remember something similar and there was uproar coz he was chilling on his boat somewhere hot and without a care in the world for all his workers.
I believe he sold BHS for £1, BHS was riddled with debt and a massive hole in the pension. Probably the same going on here. How this is allowed is beyond me. I feel foe all the staff not knowing is they have a job after lockdown. The government need to act, seize is assets maybe?
 

WeeScottishLass

Distinguished Member
I believe he sold BHS for £1, BHS was riddled with debt and a massive hole in the pension. Probably the same going on here. How this is allowed is beyond me. I feel foe all the staff not knowing is they have a job after lockdown. The government need to act, seize is assets maybe?
Yup, that was it!! And you're right, it looks like the same is happening here 😔
 

Greg Hook

Moderator & Reviewer
Very sad for the thousands of employees, plus former employees who are getting pensions.
This will all disappear.

The owner on the other hand is a nasty piece of work.
 

gibbsy

Moderator
I believe he sold BHS for £1, BHS was riddled with debt and a massive hole in the pension. Probably the same going on here. How this is allowed is beyond me. I feel foe all the staff not knowing is they have a job after lockdown. The government need to act, seize is assets maybe?
£350m hole in the pension fund. If that's not filled then it's the taxpayer that picks up the bill and I believe proceeds from the sale of the company assets will be placed into the pension fund as well. It stinks with him involved in yet another pension shortfall. I agree that the government should seize his assets if wrong doing is found.
 

stblob

Well-known Member
£350m hole in the pension fund. If that's not filled then it's the taxpayer that picks up the bill and I believe proceeds from the sale of the company assets will be placed into the pension fund as well. It stinks with him involved in yet another pension shortfall. I agree that the government should seize his assets if wrong doing is found.
How much is that boat worth?
 

gibbsy

Moderator
How much is that boat worth?
£100 million. Confined to port in Monaco because of a Covid outbreak amongst the crew. Got to feel sorry for the guy now, can't even get out of the dock to go fishing.

boat-2780731.jpg
 

Stuart3892

Suspended
£350m hole in the pension fund. If that's not filled then it's the taxpayer that picks up the bill and I believe proceeds from the sale of the company assets will be placed into the pension fund as well. It stinks with him involved in yet another pension shortfall. I agree that the government should seize his assets if wrong doing is found.

Most private sector DB Schemes have a shortfall.

That’s why the vast majority are closed to new business (to avoid building up even greater liabilities) and rely on the employer being around for the next 5-10 years to reduce that deficit by paying additional contributions and hope that investment markets perform well to fund the rest.

The Pandemic has clearly hit many businesses who were already struggling.
 
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gibbsy

Moderator
markets perform well
It also depends on well the owners of the companies run their respective business. I'm not too worried about Mr Green he'll just have to down size on the size of boat. It's the hard working people of his companies that are going to suffer.

He had to stump up over £360 million after the BHS collapse to cover the pension short fall, don't think he did that out of the goodness of his heart.
 

Stuart3892

Suspended
It also depends on well the owners of the companies run their respective business. I'm not too worried about Mr Green he'll just have to down size on the size of boat. It's the hard working people of his companies that are going to suffer.

He had to stump up over £360 million after the BHS collapse to cover the pension short fall, don't think he did that out of the goodness of his heart.

I am not disputing that he has a responsibility, nor do I have any sympathy with him whatsoever, I was simply highlighting that a DB pension fund in deficit is (unfortunately) a normal situation.
 

OneEyedStuart

Distinguished Member
He had to stump up over £360 million after the BHS collapse to cover the pension short fall, don't think he did that out of the goodness of his heart.

The pension shortfall at BHS was something like £570 million, the fact he had to stump up 200 shy of this is criminality in it's own right as far as I am concerned.
 

richp007

Distinguished Member
I believe he sold BHS for £1, BHS was riddled with debt and a massive hole in the pension. Probably the same going on here. How this is allowed is beyond me. I feel foe all the staff not knowing is they have a job after lockdown. The government need to act, seize is assets maybe?

He's a crook with a knighthood.

He'll be in the House of Lords next.
 

Autopilot

Distinguished Member
Not really been a fan of those stores or used them for many years, they had not moved with the times much, they always had a 1990’s vibe to them. Thier days were numbered and obviously C19 has just pushed them over the edge. Looks like Debenhams are not being reduced now either. More will fall after Xmas. In the new year many towns, especially the clone town with few independent shops, are going to be decimated. It will be very sad and depressing to see.

Poor Phil. He actually has 3 boats, he might have to downsize to 2. Savage.
 

RBZ5416

Distinguished Member
I didn't know who Arcadia (other than a band formed by Simon Le Bon) were but just learned it means Debenham's.
Only indirectly. Debenhams isn't part of Arcadia but Arcadia account for a large percentage of the concessions within Debenhams stores. So if Arcadia fold then that's a huge amount of floorspace to try to fill with other brands. That's why Ashley said he'd pull out of the Debenhams rescue if Arcadia folded.
 

Hixs

Distinguished Member
That's the high street just about 90% fudgeed now then.

All that's left is for Argos and Curry's to fold...
 

richp007

Distinguished Member
Yeah won't be long now. I remember going to town on the train with my mates from school at the weekend, and ploughing round the likes of HMV, TopMan, Burton's all day. Getting a new Ben Sherman for the pub next weekend :laugh:

They were good bloody days.

 

Hixs

Distinguished Member
Yup same. Or popping in at opening to pick up a new cd before college starts then listening on repeat all day.
 

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