Frasers Group, the retail giant led by Mike Ashley, has confirmed it has made an offer to beleaguered Arcadia for a loan of up to £50 million.
Sir Philip Green’s retail empire, Arcadia Group, is preparing to appoint administrators it is understood. The company employs around 13000 people and is behind high street brands such as Topshop and Wallis.
A weekend report from Sky News said Frasers’ Ashley was offering a £50 million lifeline to keep Arcadia afloat.
Frasers, which owns Sports Direct, Evans Cycles and Flannels, today said: “The company can confirm that it has made an offer and provided draft terms to the Arcadia Group for a loan of up to £50 million and is now awaiting a substantive response.”
The firm added: “Should the company and the Arcadia Group's efforts to agree an emergency funding package fail and the Arcadia Group enter into administration, the company would be interested in participating in any sale process.”
Arcadia approached potential lenders about borrowing an emergency £30 million loan to prop-up the business after seeing its pre-Christmas trading plans hurt by the latest lockdown, it was reported earlier this month.
If the insolvency is confirmed, it would likely trigger a scramble among creditors to get their hands on the company’s assets.