Arcadia Group’s Miss Selfridge reported a £17.5m loss before tax for the year to 1 September 2018, compared with a loss of £4.2m in 2017.
Operating losses widened from £3.8m to £16.9m in the same period, while turnover dropped by 15% to £102.8m. The company said losses widened after incurring “exceptional charges” in the period, £12.8m compared to £4.7m in 2017, including provision for onerous leases and restructuring costs, as well as redundancies. The average number of staff working in the chain’s UK stores fell by about 300 to 1,188 people.
Arcadia Group launched seven company voluntary arrangements (CVAs) in June. In May, the company said it planned to put the property holding companies of Miss Selfridge and its sister brand, Evans, into administration, resulting in the closure of 25 stores. Six Miss Selfridge stores and 19 Evans stores are expected to be affected by the administrations of both property companies.
It was announced in July that the Miss Selfridge Oxford Street store would close, to allow the group to focus on its wholesale, concession and online model. Its 50 staff were redeployed across Arcadia Group’s London locations, including the Topshop concession. Casual footwear brand Vans now sub-lets the store.
Arcadia Group reported an operating loss of £138m for the 53 weeks to 1 September 2018, plummeting from a £119m profit in the previous year. The retail group’s turnover for the period dipped 4.5% to £1.8bn, which it attributed to “the ongoing challenge global market conditions for retailers”.
EBITDA at Sir Philip Green’s empire decreased 40% to £78.3m.