Arcadia, the owner of the British brand Top Shop, filed for bankruptcy due to a sharp drop in sales during the Corona period • It is not clear how the move will affect stores in Israel
This time it seems the end.
Topshop
Photography:
Reuters
British retailer Arcadia, owner of British brand Top Shop filed for bankruptcy yesterday (Monday).
The company seeks protection from creditors, as it tries to save 13,000 jobs and brands like Top Shop, after clothing sales collapsed during the Corona plague.
The company also owns brands Miss Selfridge and Dorothy Perkins.
The company said the Deloitte firm believed in the proceeding caused by the corona impact.
The company operates 444 stores in the UK and 22 outside the kingdom.
The purpose of the bankruptcy process is to provide Arcadia with breathing space from the creditors when searching for a buyer for the company.
During this period, Arcadia managers will continue to be in day-to-day management.
The company made it clear that they will honor all orders placed during Black Friday sales.
It is not yet known how this move will affect Top Shop chain stores in Israel.
The stores in Israel that can now operate as part of the malls pilot and under the guidelines operate as well as the company's online website.
These are stores anyway, the Ofer Mall in Petah Tikva and the Sharonim Mall in Hod Hasharon.
Ian Garbiner, CEO of Arcadia said, “This is a sad day for all of our colleagues as well as our many suppliers and stakeholders.
"The impact of the Corona epidemic, which includes the forced closure of stores for extended periods, has severely affected trade in all of our brands."
Bankruptcy filings come at a time when the UK is facing a growing unemployment crisis.
This is the worst recession in over 300 years.
Major clothing retailers including Marks & Spencer and Selfridges have announced sweeping job cuts as a result of the epidemic and the closure of stores for months.
As a result, the process of online purchases has accelerated.
Arcadia, which cut 500 head offices earlier this year, struggled even before the plague began to hit.
The group barely avoided bankruptcy in June 2019 and made a move that included closing about 50 stores across the UK and Ireland and all 11 Top Shop and Topman stores in the United States.
