Philip Green is reportedly gearing up to untether parts of retail conglomerate Arcadia Group in an effort to more easily sell off some of its fashion brands.
Arcadia Group runs brands such as Miss Selfridge and Burton globally, as well as Topman and Topshop in Australia after taking back control of the businesses in 2017.
Topshop has 3 stores across Australia, while Topman trades across 2. Both brands also trade online through their own dedicated online channels, and through The Iconic.
A report in The Sunday Times said that the group is separating the various brands’ shared functions, such as IT and HR, to more easily facilitate divestment.
However, Arcadia said the report is inaccurate and that the board is fully focused on implementing its turnaround plan across all its brands, according to The Guardian.
The claims come almost three months after Arcadia Group was given leave to close a further 23 stores in a crucial company voluntary arrangement.
Following the closures, Arcadia is expected to retain around 500 stores.
According to the report, Green has been waiting for the conclusion of two legal disputes before taking further steps toward breaking apart the empire.
Both of these disputes were dropped last week after out-of-court settlements.
According to GlobalData senior retail analyst Chloe Collins certain brands in Arcadia’s roster are no longer resonating with its audience.
“[Arcadia]’s leading brands – Topshop and Topman – still have a strong following among millennials, however many of the other, such as Miss Selfridge and Dorothy Perkins, are now irrelevant in a highly saturated market and chances of revival are slim, leading landlords to question whether other retailers could offer their spaces more longevity,” Collins said.
“These stores have been neglected for far too long and are now unable to match competition which moves in favour of experience-led shopping.”
Inside Retail has reached out to Arcadia Group for clarification.
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