Sir Philip Green’s Arcadia Group is thought to have suffered a 16.5% fall in operating profits to £211.2m in the year to 31 August 2016, as it struggled with tough high street trade.
Sales dipped by 2.5% to just above £2bn, Arcadia’s holding company Taveta Investments’ accounts are expected to show later this week. The figures were leaked ahead of time to the Sunday newspapers.
The final accounts are expected to include a non-cash write down to account for the declining value of stores and leases.
The group, which includes Topshop/Topman, Miss Selfridge, Dorothy Perkins, Evans, Wallis and Burton, finished the year with cash of £223m, compared with £229m the year before. It invested almost £100m during the year.
Green is reportedly promoting from within to plug gaps in the management team. Responsibility for Burton has been given to Dorothy Perkins boss Malcolm Storey, the Mail on Sunday reported.
It follows a string of high profile departures at the retail group.
Trading director of Topshop, James Mooney, is leaving the business. Previous departures include Topshop managing director Mary Homer, Evans managing director Fiona Ross, Topshop/Topman’s retail director Craig McGregor, Burton MD Wesley Taylor and Miss Selfridge creative director Yasmin Yusuf.
Topshop/Topman global commercial director Matt Brewster is also leaving the company.
Former Miss Selfridge retail director Gerry Harte, who left Arcadia in November after almost 20 years at the group, last week joined Animal as retail director.
Sources told The Sunday Times that Green has brought in management consultants McKinsey & Co to help with getting the business back on track.