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Friday 22 November 2019

520 jobs on the line as Topshop owner plans closure of 23 stores - including four in city

Topshop/Topman at Jervis St is one of the stores set to close. Photo: Owen Breslin
Topshop/Topman at Jervis St is one of the stores set to close. Photo: Owen Breslin

The Arcadia Group is to shut 23 stores in Ireland and the UK, putting 520 jobs at risk.

Four stores in Dublin are among those earmarked to close.

These are Topshop/Miss Selfridge at St Stephen's Green, Topshop/Topman at Jervis Street, Evans/Wallis in Henry Street and Wallis in Liffey Valley.

Stores in Galway and Cork will also go.

Approval

Dorothy Perkins, Burton, Topshop and Topman stores have been earmarked for closure as part of a company voluntary arrangement (CVA).

The group's proposals will also see rent cut at 194 outlets.

All the retailer's 11 Topman and Topshop stores in the US are also set to close.

Arcadia directors will meet creditors on June 5 to seek approval for the proposals. Some 75pc of creditors will have to approve the plans.

"Against a backdrop of challenging retail headwinds, changing consumer habits and ever-increasing online competition, we have seriously considered all possible options to return the group to a stable financial platform," said Arcadia chief executive Ian Grabiner.

"This has been tough but necessary 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, said: "Arcadia and its portfolio of fashion brands have faced unprecedented market conditions, 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."

Speculation began early this year that billionaire Philip Green 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.

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