The Arcadia Group retail empire, owned by Sir Philip Green is reportedly seeking to borrow up to £50M against its distribution centre to support the business through the coronavirus crisis.
According to Sky News, the fashion group has approached banks and hedge funds about a new round of borrowing against its new distribution centre in Daventry, Northamptonshire. It is not yet clear whether a deal has been reached. Arcadia opened the logistics hub in Daventry last year, and it forms a central part of its Topshop logistics network.
All 550 UK stores in the Arcadia portfolio are currently closed due to the government-mandated lockdown, and the company is looking to shore up its future during the Covid-19 pandemic.
Green’s wife Lady Tina Green is the ultimate owner of Arcadia and has security over it. She reportedly agreed to subordinate her debt position to allow Arcadia to borrow against the distribution centre last year.
Earlier this month, Arcadia announced it was furloughing 14,500 of its 16,000 staff.
