THE potential collapse of St Philip Green's Arcadia Group may have put a deal to rescue Debenhams at risk - just six months after the future of Newport's branch of the chain was secured.

Yesterday evening it was announced the retail group, which owns high street brands including Topshop, Dorothy Perkins and Burton, had fallen into administration, putting around 13,000 jobs at risk.

At now JD Sports has announced it has pulled out of talks to rescue department store chain Debenhams, which itself fell into insolvency earlier this year.

Many of Arcadia’s staff worked at its brands’ concessions in Debenhams.

Earlier this year the future of Newport's landmark Debenhams store in Friars Walk was secured following a campaign led by the Argus after Newport City Council agreed to defer the company's business rates until later in the year.

During the first coronavirus lockdown earlier this year the Welsh Government launched a scheme available offering business rates relief to companies - but it was not available to companies with a rateable value of more than £500,000 - meaning the city's Debenhams branch was not eligible.

The company's chairman Mark Gifford had said its Welsh stores would not re-open unless the cap - which was not in place in England - was scrapped, but the Welsh Government refused to do so.

The Newport store has a rateable value of £510,000. However, following a campaign spearheaded by the Argus, the council agreed to defer the company's rates until later in the year. It is unclear how today's news will affect this deal.


Arcadia, which runs 444 stores in the UK and 22 overseas, said 9,294 employees are currently on furlough.

No redundancies have been announced as a result of the appointment and stores will continue to trade, the administrators said, with many due to reopen on Wednesday when England’s lockdown is lifted.

Ian Grabiner, chief executive of Arcadia, said: “This is an incredibly sad day for all of our colleagues as well as our suppliers and our many other stakeholders.

“The impact of the Covid-19 pandemic, including the forced closure of our stores for prolonged periods, has severely impacted on trading across all of our brands.

“Throughout this immensely challenging time our priority has been to protect jobs and preserve the financial stability of the group in the hope that we could ride out the pandemic and come out fighting on the other side.

“Ultimately, however, in the face of the most difficult trading conditions we have ever experienced, the obstacles we encountered were far too severe.”

Retail trade union Usdaw has said it is seeking urgent meetings with Arcadia’s administrators in a bid to preserve jobs.

Dave Gill, Usdaw national officer, said: “Now that Arcadia is in administration, it is crucial that the voice of staff is heard over the future of the business and that is best done through their trade union.

“We are seeking urgent meetings and need assurances on what efforts are being made to save jobs, the plan for stores to continue trading and the funding of the pension scheme.

“In the meantime, we are providing our members with the support and advice they need at this very difficult time.”

The administrators said they will be “assessing all options available”, which could see brands sold off in separate rescue deals.

Arcadia will continue to honour all online orders made over the Black Friday weekend and will continue to operate all of its current sales channels.

Matt Smith, joint administrator at Deloitte, said: “We will now work with the existing management team and broader stakeholders to assess all options available for the future of the group’s businesses.

“It is our intention to continue to trade all of the brands, and we look forward to welcoming customers back into stores when many of them are allowed to reopen.

“We will be rapidly seeking expressions of interest and expect to identify one or more buyers to ensure the future success of the businesses.”

Earlier on Monday, Mike Ashley’s Frasers Group said an offer for a £50 million lifeline for Arcadia was rejected.

It came as MPs called on Sir Philip to cover a shortfall in the pension scheme and urged the pension watchdog to fight on behalf of the group’s workers.

A spokesman for The Pensions Regulator said: “We are aware of the challenges that the business is currently facing in these unprecedented times and we continue to work with the directors, the trustees and their respective advisers, as well as the PPF, to protect the position of the Arcadia pension schemes’ members to the fullest extent possible.”

Stephen Timms, chairman of the Work and Pensions Committee, called on Sir Philip to stump up funds to fill the pensions black hole, which is estimated to be as large as £350 million.

It is the latest retailer to have been hammered by store closures during the coronavirus pandemic. Rivals including Edinburgh Woollen Mill Group and Oasis Warehouse have fallen into insolvency since lockdown measures were first imposed in March.

Debenhams and Newport City Council have been approached for comment.

Debenhams branches in Gwent:

  • Friars Walk, Newport

Topshop branches in Gwent:

  • Newport Retail Park, Spytty

Burton branches in Gwent:

  • Bargoed: Hanbury Road
  • Newport: Newport Retail Park, Spytty
  • Risca: Pontyminster Industrial Estate, Newport Road

Dorothy Perkins branches in Gwent:

  • Bargoed: Hanbury Road
  • Newport: Friars Walk
  • Newport: Newport Retail Park, Spytty
  • Risca: Pontyminster Industrial Estate, Newport Road