Arcadia on brink of collapse; record month for stock markets – business live

Rolling coverage of the latest economic and financial newsLatest: Mike Ashley offers £50m emergency loanIntroduction: Philip Green’s Arcadia on the brinkFears over pensions black holeNovember has been best month for markets ever 8.12am GMT Arcadia was already in trouble before Covid-19 hit the retail sector. Back in 2019, it avoided collapse after creditors backed a rescue plan that involves the closure of 50 stores and 1,000 job losses. Business consultant Kate Hardcastle told the BBC that there are three reasons the company is struggling:"They lost relevance with their consumers"Retail analyst @katehardcastle tells #BBCBreakfast the potential collapse of Arcadia is not solely because of Covid-19.https://t.co/bypreXOp4A pic.twitter.com/xMf7IwxV4s 7.48am GMT My colleague Zoe Wood has analysed how Sir Philip Green’s empire, which once dominated the high street, is now teetering on the edge of administration.The 68-year-old businessman has been trying to extricate himself from Arcadia without loss of face for some time. The company only narrowly avoided administration last year when landlords backed a restructuring plan that involved closing 50 shops and shedding 1,000 jobs.In the coming days Arcadia is expected to enter “light-touch” trading administration, which means management retains control of the day-to-day running of the business while administrators seek buyers for all or parts of the company. Struggling department store chain Debenhams took this route in April, although a rescue deal is still to be finalised.Green’s abrasive style didn’t win him many friends in the boardroom, but it has won grudging respect. “He is one of the best dealmakers I’ve seen,” recalled one senior retailer.I don’t think he is a particularly good retailer; he is good at buying and selling. He ended up being a victim of himself. When you want to screw everybody over all the time … nobody wants to buy anything from you.” Related: Philip Green's empire was doomed by failure to move with the times Continue reading... https://www.theguardian.com/business/live/2020/nov/30/arcadia-collapse-administration-philip-green-record-month-stock-markets-ftse-100-business-live #business #economics #stock_markets #ftse #philip_green #retail_industry