Mon. Sep 16th, 2019

Philip Green’s retail company faces substantial loss

Recent reports suggest substantial loss faced by Sir Philip Green’s Arcadia Group. Sources allege, a loss of about 169 million pounds when it narrowly escaped a complete collapse previously in June.

According to figures released by Arcadia’s holding company Taveta Investments Ltd, the turnover of the company descended to 4.5% to 1.81 million pounds. On the other hand, the operating profit also sank to 78.1 million pounds from 124.1 million pounds in the previous year.

“The retail landscape has changed dramatically over recent years and the increased competition from other high street and online retailers in particular has had a significant impact of our performance,” a company spokesperson commented.

With regards to the current situation, the company said it was drawing clear propositions on its strategic direction.

Based on a report by Auditor PwC, issues regarding the external market conditions caused mainly due to Britain’s exit from the EU, could further affect the company’s growth ability.

According to a report, the company profits declined because the firm was not able to close the stores, while its sales dropped.

Furthermore, BBC sources emphasized on the refinancing of 310 million pounds loan in connection with the flagship Topshop store located on Oxford Street in London. Directors of the company have been confident about the refinancing of the loan.