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Jobs and stores could be cut at Topshop as beleaguered Sir Philip Green sees sales fall

Billionaire's company Arcadia says high street pressures are to blame for drop in profits

Saturday 16 March 2019 20:05 GMT

(EPA-EFE)

Beleaguered Topshop boss Sir Philip Green may cut jobs and close stores following an ongoing slump in sales at his retail empire.

The billionaire’s company, Arcadia Group – which also owns Miss Selfridge, Evans and Wallis – said it was exploring ways to make the business more efficient in an “exceptionally challenging retail market”.

Staff cuts and a reduction of stores were both being considered, it added - but gave no further details.

The announcement follows a torrid two years for Sir Philip.

In October, he found himself at the centre of allegations – vehemently denied – of racist and sexist bullying of staff and claims he then used non-disclosure agreements to keep such accusations secret.

Death of the British high street? The retailers affected

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1/9Death of the British high street? The retailers affected

Death of the British high street? The retailers affected

Toys 'R' Us

Customers shop at a Toys 'R' Us store. The retail chain announced plans to shut all of its US stores, becoming one of the biggest casualties of the retail shakeout amid the rise of e-commerce. The debt-plagued company announced that it has filed a motion for bankruptcy court approval to liquidate its US operations, a move that could hit 33,000 jobs. The UK retailer failed to find a buyer and said their 105 Toys R Us stores would remain open until further notice, with administrators appointed to begin "an orderly wind-down".

AFP/Getty

Death of the British high street? The retailers affected

New Look

New Look announced it will shut 60 stores and cut 980 jobs as part of a restructuring plan agreed with its creditors.

PA

Death of the British high street? The retailers affected

Maplin

A Maplin store displays closing down notices after the company went into administration.

Reuters

Death of the British high street? The retailers affected

Claire's Accessories (US only)

People walk past a Claire's store in downtown Chicago. The chain that has pierced the ears of millions of teens has filed for Chapter 11 bankruptcy protection. The accessories chain said that its stores will remain open as it restructures its debt.

AP

Death of the British high street? The retailers affected

Carpetright

Carpetright announced that it has secured £12.5m of emergency funding from one of its largest shareholders and that it is exploring the opportunity of seeking approval for a restructuring plan under which it would slash rents and shut stores to avoid going into administration.

Reuters

Death of the British high street? The retailers affected

MOSS BROS.

Suits specialist Moss Bros has reported a drop in earnings and profit in 2017, blaming a “tough end to the year” and stock shortages which hurt sales. Chief executive Brian Brick said: “Going forward, we are planning for an extremely challenging retail environment, not least because of the uncertain consumer environment and significant cost headwinds.”

PA

Death of the British high street? The retailers affected

Mothercare

Mothercare warned over profits after UK sales plunged in the run-up to Christmas 2017, with consumer spending falling in both stores and online.

PA

Death of the British high street? The retailers affected

House of Fraser

The Chinese owner of House of Fraser plans to sell its majority stake in the troubled department-store chain, adding to the upheaval on the UK’s shopping streets.

Getty Images

Death of the British high street? The retailers affected

Conviviality - Bargain Booze

Bargain Booze owner Conviviality could be heading for administration after failing to secure emergency funding, placing 2,500 jobs at risk.

AFP/Getty

Before that, the 67-year-old was widely criticised - and faced calls to be stripped of his knighthood - over the demise of BHS which led to the loss of 11,000 jobs. The high street chain collapsed shortly after the tycoon sold it for £1 .

The latest statement from Arcadia made no mention of either scandals and suggested the business was suffering only because of the wider retail pressures which have already caused a range of other chains, including HMV, Mothercare and House of Fraser, to close outlets and make redundancies.

It said: “Given the continued pressures that are specific to the UK high street we are exploring several options to enable the business to operate in a more efficient manner…

"None of the options being explored involve a significant number of redundancies or store closures. The business continues to operate as usual including all payments being made to suppliers as normal.”

The statement came after media speculation that Sir Philip was considering taking a company voluntary arrangement, a form of insolvency that would allow rent cuts to be sort and make it easier to close unwanted stores.

Previously, it emerged in January that the business had hired advisers at Deloitte to explore a restructuring options.

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