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Philip Green’s retail empire, Arcadia, reportedly fell into administration while owing its creditors £750m.
The debts, first reported by the Telegraph, largely comprised Topshop’s gross liabilities of over £550m, with Outfit also owing £80m.
The figure, which is believed to exclude the group’s unsecured debt to HMRC surrounding its retirement fund and liabilities, is steeper than originally reported, implying that creditors may be sold short on their returns.
The news comes as Asos has emerged as a frontrunner in the race to snap up Topshop from its appointed administrators, Deloitte, just days after Next was forced to withdraw from a deal.
A London Stock Exchange update from the online fashion retailer penned the talks as “exclusive”, as Asos looked to acquire the Topshop, Topman, Miss Selfridge, and HIIT brands.
As for the 9,000 individuals belonging to Arcadia’s pension scheme, it remains unclear whether the firm’s large liabilities will affect a possible payout.
Experts have predicted, via the Times, that it could cost almost £350m to shed the liabilities to an insurer.
While the scheme sits in a long line of creditors, Sir Philip Green’s wife, Lady Green, secured some guarantees back in 2019.
