Arcadia Group is behind a number of fashion brands
(Picture: AFP/Getty Images)Arcadia Group, the troubled fashion firm behind Topshop, Dorothy Perkins and Wallis, has rejected a lifeline loan offer from Mike Ashley’s Frasers Group.
Sir Philip Green’s Arcadia, which employs around 13000 people, is understood to be preparing to appoint administrators from Deloitte as soon as today, after talks with lenders about a £30 million loan ended without success.
This morning retail tycoon Ashley’s Frasers Group said it has offered Arcadia Group a loan of up to £50 million, and was “awaiting a substantive response”.
Frasers, which is behind Sports Direct, has now said that Arcadia has declined the offer of a ‘lifeline’ loan of up to £50 million.
The firm added that it was not given any reasons for the rejection. Arcadia declined to comment.
Retailers have been hammered this year by lockdowns, adding to existing headaches high street firms were facing, such as increasing competition online.
Green today faced calls to cover the estimated £350million shortfall in the company’s pension scheme from his family’s personal wealth.
Stephen Timms, the head of the Work and Pensions Committee, said: “There is unquestionably a moral case for the Green family to do the right thing and guarantee Arcadia’s hardworking staff what is rightfully theirs, whatever happens this Christmas.”
If the group enters administration, its pension scheme would be taken on by the Pension Protection Fund.
