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Arcadia to axe 170 head office jobs

Arcadia is to cut 170 head office roles as Sir Philip Green battles to turn around its fortunes.

In a statement, the retailer said that it was “proposing to make some structural changes in order to support and deliver the turnaround plan”.

The statement continued: “As a result of this, some roles across our various head offices are at risk of redundancy. We will be supporting those colleagues throughout this process and will do all we can to redeploy those at risk in to suitable roles throughout the Group.”

Sources told Drapers that Topshop Topman is reviewing roles across its design and merchandising teams, and affected employees were informed on 13 June. A head office meeting is expected to take place on 25 June to discuss the restructuring plans.

It follows the approval of Arcadia’s controversial company voluntary arrangement (CVA) restructuring deal, which was pushed through on 12 June following long discussions with landlords and other stakeholders. 

Under the terms of the CVAs, Arcadia will close 23 out of its UK and Irish stores. Alongside the CVA, it will also put two subsidiaries into administration, resulting in a further 25 store closures. The closures will lead to the loss of around 1,000 shop floor roles.

Arcadia landlords have agreed to rent reductions of between 25% and 50% on 194 of its 566 stores.

The group’s majority shareholder, Lady Green, will invest a further £50m of equity into Arcadia if the CVAs remain unchallenged.

Drapers has contacted Arcadia for a comment on the head office restructuring.

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