Philip Green’s Arcadia Group confirms plans to shut 23 stores putting 520 jobs at risk
DISGRACED retail mogul Philip Green’s Arcadia Group has confirmed plans to shut 23 stores, putting 520 jobs at risk.
Shops earmarked for closure include those belonging to popular high street brands such as Dorothy Perkins, Burton, Topshop and Topman.
The retail group's proposals will also see rent cut at another 194 outlets.
The company is using Company Voluntary Arrangements (CVAs) in a bid to save the retail empire - but stakeholders will have to agree on plans first.
It also plans to shut all 11 of its Topshop and Topman stores in the United States.
Arcadia chief executive Ian Grabiner confirmed the planned closure of the shops while blaming “changing consumer habits” and “online competition.”
He 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."
It comes as M&S announced 25 branch closures, adding to 110 already announced by the retail chain.
Yesterday, Jamie Oliver's restaurant empire announced it was going in administration.
Sleazy tycoon Green is estimated to have lost his billionaire status with his fortune believed to have halved in a year amid a series of explosive scandals.
The Sunday Times Rich List has his fortune free-falling £1.05billion in a year to £950million because of a pension black hole in his "crumbling" Arcadia empire.
But the plummet still places Sir Philip and wife Tina at 156th on the list, down from joint 66th some 12 months earlier.
The Arcadia Group - which includes Topshop, Burton and Dorothy Perkins - was valued as worthless in this year's list, as the company copes with a pension debt which hit £565million.
The couple's stake in the company was last year valued at £750million, while the compilers also removed £300million from their worth to allow the shoring up of the shortfall.
With his wealth peaking at almost £5billion in 2007, it is the first time in 17 years that Sir Philip has not been listed as a billionaire.
The devaluation comes after sustained criticism against Sir Philip and calls for him to lose his knighthood.
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He was lambasted over the collapse of BHS, affecting 11,000 jobs, 19,000 pension holders and leaving a £571million in the pension scheme.
The businessman, who sold the department store chain to Dominic Chappell for £1 before it plunged into administration, agreed to pay £363million towards the deficit.
Sir Philip has also faced a slew of allegations, including of groping a female executive and making a racial slur at an employee.
The Croydon-born entrepreneur denied his behaviour was criminal or amounted to gross misconduct.
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