Sir Philip Green’s Arcadia Group has confirmed plans to shut 23 stores, putting 520 jobs at risk.
Topshop, Burton, Dorothy Perkins and Miss Selfridge branches have been earmarked for closure, as well as the company’s Outfit, Wallis and Evans stores.
The move is the second blow for Sir Philip this month after he lost his billionaire status in the Sunday Times Rich List.
The retail group’s chief executive described the move as a ‘tough decision’ made in a bid to save the business as more and more consumers opt to shop online.
Sir Philip Green’s Arcadia Group has confirmed plans to shut 23 stores, putting 520 jobs at risk
Topshop (flagship store in London’s Oxford Circus pictured) will see a number of its stores close
Rents will also be cut at another 192 Arcadia stores in the UK and the 11 Topshop and Topman stores in the US will close as part of an insolvency plan.
As part of the plan, Sir Philip’s wife, Lady Tina Green, and the ultimate owner of Arcadia, has offered landlords a 20 per stake of any proceeds if the group is eventually sold.
Which Arcadia stores are closing?
Aberdeen: Dorothy Perkins, Burton
Ashton under Lyne: Topshop, Topman
Bedford: Topshop, Topman
Bluewater, Kent: Miss Selfridge
Cork: Dorothy Perkins, Evans
Dublin: Evans, Wallis (x2), Topshop (x2), Topman, Miss Selfridge
Fareham: Topshop, Topman
Galway: Miss Selfridge
Glasgow: Burton, Topman
Luton: Topshop, Topman
Newcastle upon Tyne: Outfit
Nuneaton: Topshop, Topman
Reading: Dorothy Perkins, Burton
Salisbury: Topshop, Topman
Southend: Miss Selfridge
Stirling: Dorothy Perkins, Burton
Swindon Dorothy Perkins, Burton, Miss Selfridge, Wallis, Evans
York: Dorothy Perkins, Burton
She will also inject £50million of equity into the business, on top of £50 million she had already loaned the company.
The restructure is the result of seven Company Voluntary Arrangements (CVAs) put in place by Arcadia, which are designed to keep struggling businesses from going into administration.
Chief executive Ian Grabiner said: ‘Against a backdrop of challenging retail headwinds, changing consumer habits and ever-increasing online competition, we have seriously considered all possible strategic options to return the group to a stable financial platform.
‘This has been a tough but necessary decision for the business. We will ensure all potentially affected colleagues are kept fully informed as we seek approval from our creditors on today’s CVA proposals.’
Daniel Butters, partner at Deloitte, added: ‘Arcadia and its portfolio of iconic fashion brands have faced unprecedented market conditions in recent years, which have significantly impacted the group’s financial performance.
‘These CVAs will provide a stable platform for Arcadia’s experienced and committed leadership team to implement its turnaround plan and ensure the long-term sustainability of the group.’
The tycoon’s retail group currently has 1,170 shops in 36 different countries.
There are 566 Arcadia stores in the UK and Ireland, many of which are franchises inside larger stores, employing 18,000 people.
Dorothy Perkins (pictured), Burton, Wallis, Evans, Miss Selfridge and Outfit branches are all being earmarked for closure as part of an Arcadia insolvency plan
Speculation began early this year that Sir Philip would look to either sell off the company or close stores.
In March, Arcadia confirmed it was exploring options to improve efficiency in the business.
Later that month it hired property advisers to assess its estate while drawing up restructuring plans.
Last month US investor Leonard Green & Partners sold its 25 per cent stake in Topshop and Topman back to the parent company, in a move which Arcadia said simplified its structure and would allow the board to focus on restructuring.
The news comes just weeks after Sir Philip failed to appear on the Sunday Times Rich List for the first time in 17 years.
His reputation has been left damaged by the 2016 collapse of BHS, which resulted in the loss of 11,000 jobs.
He was also outed by Lord Peter Hain as the mystery businessman subject to allegations of racial and sexual harassment.
His alleged victims were made to sign Non-Disclosure Agreements, but their accusations came to light after Lord Hain used his parliamentary privilege to name him in the House of Commons earlier this year.
Miss Selfridges stores in Kent, Dublin and Southend will soon be shutting their doors