Arcadia downfall puts jobs at risk
Hundreds of local jobs are at risk as two of the biggest names in the UK retail market declared themselves in crisis.
Arcadia Group - owners of brands such as Topshop, Dorothy Perkins and Miss Selfridge - and UK retail giant Debenhams are now both at risk of collapse without new buyers or fresh investment coming forward.
Both companies have stores based in Stirling’s Thistles Centre.
Arcadia entered into administration on Monday evening, with their boss blaming“the most difficult trading conditions we have ever experienced”for the decision, with the group’s administrators Deloitte now looking into all possible options to save the group.
All of the company’s stores will remain open in the meantime, while existing online orders made over the busy‘black Friday’weekend will be honoured.
However, that wasn’t the end of the bad news, with Debenhams dropping the bombshell news that its 124 stores across the UK including its Stirling operation - will close when remaining stock is sold.
The firm - which was already in administration - saw its biggest hope of a rescue bid from JD Sports collapse after the sports retailer withdrew on Tuesday.
Geoff Rowley of FRP Advisory, joint administrator to Debenhams, said:“all reasonable steps were taken to complete a transaction that would secure the future of Debenhams.
“However, the economic landscape is extremely challenging and, coupled with the uncertainty facing the UK retail industry, a viable deal could not be reached.
“The decision to move forward with a closure programme has been carefully assessed and, while we remain hopeful that alternative proposals for the business may yet be received, we deeply regret that circumstances force us to commence this course of action.”
The news was greeted with fury from trade unions, while Stirling’s MP called for more support to be offered to those at risk of losing their jobs.
Alyn Smith MP said:“this is obviously a difficult time for high street retail, and big retailers such as Arcadia Group facing significant problems like these is a testament to that.
“My thoughts are firstly with local employees who will be faced with anxiety over the situation that has unfolded. Whilst this is not yet the end of the road, I’m hopeful a resolution can be found through the processes which have now begun.
“I also call on the UK Government to do everything it can to help find a solution that safeguards jobs. We’re in the middle of potentially the worst economic dip in anyone’s lifetime, and protecting jobs now will aid recovery when it is that we come out the other end of this crisis.”