Green’s Arcadia Sets Insolvency in Motion With U.S. Closures in Sight

LONDON — Topshop’s 11 U.S. stores could soon close their doors in the restructuring of Arcadia Group’s U.S. and U.K. operations, part of a proposed insolvency procedure revealed by Sir Philip Green’s retail group late Wednesday. After months of speculation in the British media, Green finally went public with his plan to seek insolvency for the troubled Arcadia retail group, parent of Topshop, Topman and a host of struggling high-street retailers such as Burton, Dorothy Perkins, Evans and Wallis. The company has set out a series of proposals “to ensure the long-term sustainability of the group in today’s highly competitive retail environment,” with Green joining a long line of British retailers who’ve been forced to take similar action to rescue their businesses. Ian Grabiner, chief executive officer of Arcadia Group and a longtime Green lieutenant, called the retailer’s decision to declare insolvency “tough but necessary,” and blamed “challenging retail headwinds, changing consumer habits and ever-increasing online competition” for the sustained period of declining sales. “We have in place a well-developed turnaround plan for the group, which includes driving cost efficiencies, managing the refreshed retail store estate and investing in the continued development of our multichannel proposition and logistics,” he said. Daniel Butters and Ian Wormleighton

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