Arcadia has revealed it is set to cut around 500 head office roles due to the impact of the coronavirus pandemic.
The group reportedly informed staff in an email on Wednesday around a fifth of its 2,500 head office staff would be affected by the restructuring.
In the email reportedly seen by Drapers, chief executive Ian Grabiner said: “We have already been reducing our store estate over the last few years but we also need to generate further cost savings across our company in order to ensure we have a solid foundation for the future. In order for us to achieve this, we need to restructure our head office to support a more focused and future proofed organisation.”
Confirming the reports an Arcadia spokesperson said: “Due to the impact of Covid-19 on our business including the closure for over three months of all our stores and head offices, we have today informed staff of the need to restructure our head offices.
“This restructuring is essential to ensure that we operate as efficiently as possible during these very challenging times. Sadly, it is likely to result in a reduction of approximately 500 of our 2,500 head office workforce. We deeply regret the impact this will have on those individuals affected and will do everything we can to support them.”
It comes after reports in April that Philip Green’s retail empire had approached banks and hedge funds in regards to borrowing £50m against its distribution centre in Daventry, Northamptonshire.
The site, which opened last year, functions as a logistics hub for Topshop. Green’s wife reportedly has full security over the site, but “agreed as part of a financial restructuring last year to subordinate her debt position” in order to allow Arcadia to borrow against it.