Topshop collapse hits creditors with £176m loss
Since the demise of Phillip Green’s Arcadia, suppliers in China and Turkey have been hit the hardest financially
Topshop and Topman creditors are reportedly facing losses of £176m since the demise of Sir Phillip Green’s Arcadia, according to The Telegraph.
Suppliers from countries such as China and Turkey have been hit the hardest financially as the fashion empire gets wound up.
In total, creditors are owed £219m but there is only £42.4m of assets available to pay them, resulting in the £176m loss.
It is estimated that gift card holders have been left £4.5m out of pocket.
Deloitte was appointed last year to oversee the company’s administration process, with the firm originally estimating that £82.2m was owed to creditors when Arcadia collapsed.
Earlier this month, Argos acquired Topshop, Topman, Miss Selfridge and HIIT brands for £265m, plus £30m for existing inventory, and will honour £35m of forward purchase orders.
Some 300 of Arcadia’s approximately 13,000 employees are set to be transferred to Asos, however mostly in design and product-related roles.
However, the transaction does not include the group’s 70 stores, including its Oxford Street Topshop flagship, which is now being marketed for sale.
