Taxpayers will take a major hit following the demise of the Arcadia Group, the UK fashion group that fell into administration last year. And just £30 million will be shared by heavily-out-of-pocket unsecured creditors.
The Arcadia administrators have reportedly put a price of around £200 million on its star chain Topshop, with attempts to get a deal signed pre-Christmas. That could mean initial bids being filed within the next week.
Arcadia is now operating in administration with speculation that Boohoo, Frasers, Next and M&S would be interested in buying parts of it. There are also fears over the knock-on effect on its suppliers.
Giant fashion group Arcadia is believed to be on the verge of the worst UK corporate collapse of the Covid crisis, with the firm expected to go into administration as early as Monday. This would put 13,000 jobs at risk.
It's believed that Arcadia could need to close many more stores than it had planned to as the coronavirus crisis continues to crush UK fashion retail. Its 2019 CVAs included clauses allowing extra closures to happen.