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Philip Green's Arcadia rejects Frasers' offer of 'lifeline' loan

November 30, 2020 at 12:54 pm EST

LONDON (Reuters) - Philip Green's struggling British fashion group Arcadia has turned down rival Frasers Group's offer of a "lifeline" loan of up to 50 million pounds, sportswear retailer Frasers, controlled by Mike Ashley, said on Monday.

Arcadia owns the Topshop, Topman, Dorothy Perkins, Wallis, Miss Selfridge, Evans, Burton and Outfit brands, trading from over 500 stores and employing over 13,000 people.

Its sales have been hammered by the COVID-19 pandemic and Sky News reported on Friday that it could go into administration as soon as Monday.

Arcadia said on Friday it was working on a number of "contingency options" to secure the future of its brands. If the group does enter administration, it will be the biggest British retail casualty of the pandemic so far.

"Frasers Group were not given any reasons for the rejection (of the loan) nor did Frasers Group have any engagement from Arcadia before the loan was declined," Frasers said.

Arcadia declined to comment.

Earlier on Monday, Frasers said that, should Arcadia Group enter into administration, it would be interested in participating in any sale process.

Topshop, once the go-to destination for teenagers and fashion lovers, is regarded by analysts as Arcadia's most attractive brand.

Media reports have also identified retailers Marks & Spencer, Next and Boohoo, as well as private-equity players, as potential bidders for individual brands.

(Reporting by James Davey; Editing by Paul Sandle and Pravin Char)

Stocks mentioned in the article

Add to a list Add to a list 0 selected To use this feature you must be a member Log in Sign up	Price	Change	5d. change	Capi.
MARKS & SPENCER GROUP PLC	247 GBX	-2.83%	-3.06%	6.46B
FRASERS GROUP PLC	776 GBX	-2.33%	-3.24%	4.29B
BOOHOO GROUP PLC	33.24 GBX	-2.86%	-7.87%	515M

Philip Green

British billionaire Philip Green is known for his commercial success, his unconventionality and for his mordacity. Seventh richest man in Britain, he shares with his wife Christina a fortune of £3.6 billion, according to the Sunday Times.

He leaved the school at 15 years old, and he began to work as shoes importer travelling in United States, Europe and Far East. When he came back in UK, he borrowed £20 000 and he created his first business importing jeans and selling these to retailers in London.

In 1979, Philip Green bought a large stock of clothing at extremely low prices, and he decided to open his own shop.
In 1988 he became Chairman of Amber Day, a retailing company listed on the Stock exchange.

In early 90s, he bought the chain stores Owen Owen and in 1995 Olympus Sports, which he sold three years later to JJB Sports for £ 550 million.
In 1999, he became popular thanks to hostile takeover’s attempt on Marks and Spencer. Acquisition was blocked by board of directors of the most famous British chain stores, for this reason Green changes the victim, British Home Stores (BHS), which he bought in 2000.

Two years later, it was Arcadia Group’s turn, which owned famous brands Burton, Dorothy Perkins, Evans, Miss Selfridge, Outfit, Topshop / Topman and Wallis. Recently also Etam’s chain was acquired by the English businessman.

On 20th October 2005, Green distributed to Arcadia Group’s shareholders dividends of nearly £1.3 billion, and he and his wife (own for 92%) received £1.17 billion, this is the largest dividend ever received by an individual investor in the history of the British company.

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