Arcadia could potentially take away a £30 million loan to address the impact of the second lockdown.
According to Sky News, retail empires, which own brands such as Topshop and Dorothy Perkins, have been hit hard by the pandemic and could be on the brink of management.
A spokesperson told the Sunday Times that instead of going into control, they simply “take all the appropriate measures.”
“It is not true that managers are about to be appointed. Clearly, the second UK lockdown presents an additional challenge for all retailers and we are taking all the appropriate steps to protect our employees and other stakeholders from the consequences,” the spokesman said.
During the first lockdown of British non-essential retailers, Arcadia hit a large portion of its 15,000-person workforce.
The group avoided collapse earlier this year to secure a company’s voluntary arrangement (CVA).
The retailer was hit by the closure of 50 Debenhams stores due to Arcadia’s concessions. Arcadia has an estimated 350 concessions at its Debenhams store.
Arcadia cut down on its head office cuts by around 500 earlier this year.
Earlier this year, Philip Green sold BHS to Dominic Chapel. As a result, Arcadia owners were forced to inject more than £360 million to fund the pension deficit.
Chappell was sentenced to six years for avoiding taxes above £2 million in BHS income.
“You’re not a positive personality. Your violations happen against the background of consecutive bankruptcies,” said then-Judge Brian.
