The British ready-to-wear group Arcadia, which includes the Topshop, Evans, Dorothy Perkins and Miss Selfridge brands, is on the verge of filing for bankruptcy, putting 13,000 jobs at risk. The risk of bankruptcy, which would be the most important of the crisis linked to the Covid-19 pandemic in the United Kingdom, symbolizes the downfall of Philip Green, his boss, once nicknamed “the Emperor”. For this tax resident of Monaco, known for its yachts and its oversized parties, nicknamed “The unacceptable face of capitalism” in 2016 by a parliamentary group, it is a descent into hell made of oversized ego, methods of “Cost killer” short-term and outdated economic model.
On Friday, November 27, news channel Sky News revealed that Arcadia was in serious trouble. In the process, the group split a statement acknowledging the urgency of the problem: “The forced closures of our stores for an extended period due to the Covid-19 pandemic have had a significant impact on our business. As a result, Arcadia’s board of directors is working on a number of relief options. “ A full or partial bankruptcy filing could take place in the coming days.
Adding humiliation to the financial disaster for Mr Green, Mike Ashley, his great rival, another self-made billionaire in British commerce, has let it be known that he is offering him a loan of £ 50million (55million euros). There was obviously no question of accepting for the owner of Arcadia, who still prefers to sell the assets of his group to the highest bidder than to turn to his competitor. The amount needed to bail out Arcadia is certainly much higher anyway. In 2018, the group achieved a turnover of 1.8 billion pounds. Today it has some 500 stores.
“Fast fashion”
The fall of Mr. Green, still raised to the skies less than a decade ago, is spectacular. Until 2015, Topshop was shown as an example, admired for having established itself in “fast fashion”, this inexpensive fashion which constantly adapts to the tastes of its customers, offering new models at full speed. “Inspired” those of the ready-to-wear fashion shows. By manufacturing in Asia while presenting its own catwalks at London Fashion Week to create the event, and collaborating with model Kate Moss and singer Beyoncé, the brand had become the must-have success of the early 21st century.e century. At its peak, Arcadia’s UK market share, dominated by Topshop, reached 6%. It has since been halved.
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