In a statement, the group sought to blame the virus for its woes. “The forced closure of our stores for a continuous period of time as a result of the COVID-19 epidemic has had a material impact on trade throughout our businesses,” it said.
However, it stressed that its brands were “continuing to trade” and that its stores would reopen in the UK next week once the Corona virus restrictions were lifted.
The UK has been locked out for four weeks, forcing it to close all shops selling items it considers non-essential. The lockout expires on December 2 and stores will be allowed to reopen. Other countries in the UK – Scotland, Wales and Northern Ireland – have taken slightly different approaches, but they have all reconsidered the restrictions on closing non-essential shops at various stages.
Arcadia is said to be in urgent talks with lenders in an attempt to secure a $ 30 million ($ 54 billion) loan.
If it is called management as early as next week, there is likely to be a fight among creditors to control the company’s assets.
Competitors, including the latest retailer in the UK, Debenhams, Edinburgh Wool Mill Group and Oasis Warehouse, which has been affected by the closure of stores during the outbreak, are all going bankrupt.
On Friday (UK time), menswear retailer Moss Brothers began an insolvent process to reduce its rental costs and protect itself in the future. Not only is it plagued by locks, the company is also reducing wedding demand for office cancellations and office attire. It operates 128 stores and employs about 800 employees.
For the past two decades, Green has been one of the most influential executives in European retail. He bought Arcadia in 2002 and later took over with Marks & Spencer.
His goofy attitude won him over to fans and helped his brands to join hands with supermodel Kate Moss and singer Beyonc.
But a series of slanders over the past few years have tarnished his reputation, calling for his removal from the Knighthood given to him in 2006 by Queen Elizabeth II.
For many, his high pay signifies the highest identities in the corporate world, especially when his brands need investment. The slow response to the consumer shift to online shopping is that brands have consistently failed to function.
It was only after the global financial crisis of 2008 that fundamental problems with his businesses began to show, especially in the case of PHS, which had been a part of the British highways for decades.
About a year later, the PHS collapsed, leaving 11,000 people losing their jobs and leaving the pension deficit of 57 571 million ($ 1.03 billion). Although Greens later paid hundreds of millions in pensions, his reputation never recovered. Meanwhile, P.H.S. Chappell was sentenced this month to six years in prison for tax evasion during his tenure.