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Daily Mirror
Daily Mirror
Business
Emma Munbodh

Topshop owner Arcadia to permanently close 31 stores at loss of 714 more jobs

Arcadia administrators are set to permanently close another 31 stores by the end of January, at a loss of 714 more jobs.

The retail empire, owned by Sir Philip Green, collapsed into administration in November after it became the latest company hammered by the coronavirus pandemic.

It placed 13,000 jobs and 444 leased stores at risk.

It is understood that the latest set of cuts will result in the closure of 21 Outfit stores and a further 10 branches across other brands including Miss Selfridge and Dorothy Perkins.

Outfit, which was acquired by Arcadia from Sears in 1999, is not a fashion brand itself but sells all of Arcadia's retail brands in out-of-town destinations for shoppers.

Arcadia and Deloitte declined to comment on the closure update.

The Arcadia Group also own Dorothy Perkins (Getty)

The move comes a day after the deadline for rescue bids set by administrators at Deloitte.

Next has been touted as one of the most likely victors in the process, with the listed retailer bidding for the group in partnership with US hedge fund Davidson Kempner.

It faces competition from high street rival JD Sports, which has held talks over a joint bid with US retail giant Authentic Brands.

Deloitte are expected to receive bids worth more than £200million in the process, which could be completed by the end of the month.

Would-be buyers of Topshop-owner Arcadia have the final opportunity to make an offer for Sir Philip Green’s fashion empire (AFP via Getty Images)

Last month, administrators agreed the sale of Arcadia's plus-sized brand Evans to Australian firm City Chic Collective in a £23million deal.

The rest of the firm, which includes other high street names such as Dorothy Perkins and Wallis, is being auctioned.

Shore Capital analyst Greg Lawless today said: "What we are seeing is the stronger retailers scaling up. Those with a strong balance sheet are getting bigger as the fallout from Covid on the high street is started to be felt."

Other firms believed to be looking at all or parts of the firm include Boohoo and Mike Ashley's Frasers Group. 

Melanie Leech, chief executive of the British Property Federation, said: "Property owners will be essential economic partners to the successful bidder and will want to work closely with them to ensure a positive future for viable stores."

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