Arcadia asset sale proceeds top $822 million

LONDON (Reuters) - Administrators to Philip Green’s collapsed Arcadia Group said on Friday proceeds from asset sales had topped 600 million pounds ($822 million) after they agreed the disposal of a warehouse in central England.

FILE PHOTO: A man walks past a closed branch of Topshop, after the British online fashion retailer ASOS said it has bought the brand amongst others from the collapsed Arcadia group, London, Britain, February 1, 2021. REUTERS/Toby Melville/File Photo

Arcadia’s Daventry Distribution Centre was sold by Deloitte, the administrators, to Prologis.

Deloitte did not disclose the purchase price but said the site generated a significant return above its latest book value.

Prologis has reached a separate agreement with online fashion retailer Boohoo to take a long-term lease on the site, and more than 330 Arcadia employees based there will transfer to Boohoo.

Arcadia crashed into administration in November, becoming the country’s biggest corporate casualty of the COVID-19 pandemic.

The administrators have already sold all of Arcadia’s brands and nearly all of its other assets.

Australia’s City Chic bought the Evans brand in December for 23 million pounds, and in January ASOS bought Arcadia’s prized Topshop, Topman, Miss Selfridge and HIIT brands for 265 million pounds.

Boohoo bought the Dorothy Perkins, Wallis and Burton brands, completing the break-up of Green’s empire in February.

Property yet to be sold includes 214 Oxford Street, formerly the site of Topshop’s flagship store.

Secured creditors are first in line to receive payments from the asset disposals.

Arcadia’s pension schemes have already received about 180 million pounds.

Green had a 50 million pounds loan secured on the Daventry warehouse, so can expect to recoup some or all of this loan depending on the disposal proceeds.

($1 = 0.7296 pounds)

Reporting by James Davey; Editing by Kirsten Donovan