After several weeks of speculation and uncertainty, the Arcadia Group has agreed a company voluntary arrangement (CVA) with its creditors. The company trades under the Topshop, Topman, Dorothy Perkins, Burton, Wallis, Evans, Outfit and Miss Selfridge brands have been in the news for some time, because of poor trading figures and also a large deficit in its pension pot.
The insolvency process will allow the group to continue trading at a number of sites with reduced rents. The deal also stipulates that 48 stores will close and this will result in the loss of approximately 1,000 jobs. Industry experts have suggested that these measures will not be sufficient to bring about a change in the group's fortunes, so it may be the case the more store closures and job losses are needed in the future. It is understood that the closures will take place in two tranches - both roughly accounting for 500 jobs. The first set of closures will affect 23 stores and the second set will see the remaining 25 stores close. The timings for these closures has not yet been reported.