At the start of the year, Arcadia’s brands had a value of around £800M, today it has been reported that this has more than halved as administrators continue to look for buyers.
Topshop accounted for more than £400M of the start of the year £800M valuation and despite the news this week, this brand remains the groups most valuable asset. It is possible that under a new owner, both Topshop and its counterpart Topman are likely to bounce back.
Richard Haigh, Brand Finance MD, commented: that “much of the value will now have been lost due to the collapse of the business, but Arcadia going into administration offers an unmissable opportunity for strategic acquisitions. Deloitte will have an interesting job extracting the value from an impressive portfolio of brands.”
Proposed buyers so far include Boohoo and Frasers Group however as the former is likely to want to close store locations, they may not be as favourable to administrators at Deloitte.
