Pension Deficit and Asset Sales Impact Assessment

  • Arcadia owed £800m to creditors upon collapse
  • Pension deficit of £510m contributed to the debts
  • Green family paid £100m into pension schemes over two years
  • Combined deficit of fashion retailer’s three pension schemes is £150m more than previous estimates
  • £180m received from sale of Arcadia’s assets
  • Trade creditors owed £163m, landlords and tax authorities lost £36.5m and £44.2m respectively
  • Topshop and Topman operations owe £219m out of the total £800m
  • Available assets of £42.4m offset creditor losses to £176m
  • Arcadia’s administrators close three distribution centers, putting 1,000 jobs at risk

Arcadia, the owner of Topshop, Dorothy Perkins, and Miss Selfridge, owed £800 million to its creditors upon its collapse in November. A pension deficit of £510 million reportedly contributed to the firm’s debts. Despite the Green family paying £100 million into the schemes over the past two years, the combined deficit of the fashion retailer’s three pension schemes is £150 million more than previous estimates. Deloitte, a Big Four accountancy firm, was called in as administrators and found that trade creditors were owed £163 million while landlords and tax authorities lost £36.5 million and £44.2 million respectively. Out of the total £800 million owed by the group, £219 million can be traced to Topshop and Topman operations. With available assets of £42.4 million, creditor losses are slightly offset to £176 million. Arcadia’s administrators have initiated the closure process for three of the group’s distribution centers, putting over 1,000 jobs at risk.

Factuality Level: 8
Factuality Justification: The article provides accurate information about Arcadia’s financial situation, its debts, and the impact on various stakeholders. It cites a reliable source (the Guardian) and includes relevant details about the company’s assets and ongoing efforts to support workers.
Noise Level: 4
Noise Justification: The article provides relevant information about Arcadia’s financial situation and its impact on creditors, pension schemes, and job losses. It also mentions the efforts of the GMB union to support workers. However, it could benefit from more in-depth analysis or contextualization of the broader implications of this event for the retail industry.
Financial Relevance: Yes
Financial Markets Impacted: Topshop, Dorothy Perkins, Miss Selfridge, pension schemes, trade creditors, landlords, tax authorities
Financial Rating Justification: The article discusses the financial situation of Arcadia and its impact on various companies and stakeholders such as pension schemes, trade creditors, landlords, and tax authorities.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.

Reported publicly: www.retailsector.co.uk