Court appoints provisional liquidator to Top Shop owner’s firms

THE High Court has appointed joint provisional liquidators to four Irish operating companies that are part of the UK high-street fashion group Arcadia.

The companies, including Topshop/Topman Ireland, between them employ 487 people in 14 stores in the Republic and also have concession stands in various premises.

It is hoped to procure the sale of the Irish operations as part of an overall sale of the Arcadia group and the intent is the Irish stores will continue to trade under the provisional liquidators through Christmas to maximise the value of winter fashion stock, the court was told.

The application for the appointment came on the heels of the appointment of provisional administrators to the Arcadia Group (AGL) in the UK.

AGL owns the Topshop, Topman, Dorothy Perkins, Wallis Retail Ireland Ltd, Miss Selfridge, Evans, Burton and Outfit brands, trading from over 500 stores in the UK, employing more than 13,000 people.

The court was told the Irish companies rely entirely on AGL for them to trade and cannot operate independently of the Arcadia group as a whole.

UK entities own the relevant brands and intellectual property rights, operate the online platforms and own the leasehold interests in the premises used by the Irish companies, the court heard.

Mr Justice Michael Quinn granted the application to appoint Ken Fennell and James Anderson of Deloitte as joint provisional liquidators.

The companies are Arcadia Group Multiples Ireland Ltd, Topshop/Topman Ireland Ltd, Wallis Retail Ireland and Miss Selfridge Retail Ireland.

The judge was told the companies are unable to pay their debts for reasons including the insolvency of the Arcadia group as a whole. The impact on the Irish operations of Arcadia was “particularly severe” with the Irish stores, which were closed for 23 weeks, seeing revenues plummet by up to 60pc, counsel said.

Mr Justice Quinn said he was satisfied to appoint the joint provisional liquidators and returned the petition to December 21.

The appointment would facilitate the stores here reopening today, he added.