The Arcadia retail empire, which includes Dorothy Perkins, Burton and Topshop faces, imminent collapse, according to recent reports.
The Arcadia group had been seeking extra cash to help it recover the gap from lost sales during the pandemic.
However, senior sources at the company have informed reporters that they do not expect a last-minute rescue deal, which makes administration the most likely option, as this will give the business protection from its creditors.
Inquesta has previously highlighted the significance from an insolvency point of view of going into administration during November instead of December this year.
This is because Crown Preferential Status in insolvency begins in December.
Crown Preferential Status means that any return to unsecured trade creditors would potentially be higher than were the process to begin in December or later, which could potentially be very damaging for Acadia if it went into administration with the new rule in place.
Be that as it may, this is still very worrying news for the 13,500 staff currently employed by the various brands whose jobs are all now at risk.
Pre-coronavirus, Arcadia’s best-known names had been struggling against newer, online-only fashion retailers such as ASOS, Boohoo and Pretty Little Thing.
Recent events are showing the impact of the virus on the high street.
With many stores now relying heavily on a Christmas sales boom to secure their futures, it would not be surprising if we saw more major brands suffer a similar fate as Arcadia in the first few months of 2021.