Administrators for Sir Philip Green's Arcadia empire are to close down its Outfit operation by the end of the month, with the loss of more than 700 jobs.
Outfit, which brings all of the tycoon's retail brands including Topshop under one roof, has 21 sites in mostly out-of-town shopping destinations.
They employ 714 people - all currently furloughed.
It is understood that a further 10 Arcadia stores are to be shut down as leases expire.
Arcadia and Deloitte - appointed as administrators when the group collapsed in early December - declined to comment on the closures, which were first reported by The Times.
Up to now, the only part of the Arcadia empire to have been saved is the Evans brand, which was bought up just before Christmas by City Chic Collective for £23m.
However, that deal did not include its stores which, like the rest of the wider group's store network, remain largely closed because of continuing COVID-19 restrictions.
It is widely expected that there will be news within weeks on whether efforts to find buyers for the bulk of the group's existing operations - all currently trading online to clear stock - have been successful.
Sky News has revealed that Next and JD Sports are part of competing consortia for the brands, with Topshop the most valuable.
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The others in Sir Philip's stable include Dorothy Perkins, Burton and Wallis.
However, any deal is expected to result in the loss of some jobs as the new owners are unlikely to retain the group's entire estate of around 400 stores in the current market.
As someone deeply entrenched in the world of retail and business, I bring a wealth of knowledge and firsthand expertise to the table. With a keen eye on industry developments, I've closely followed the rise and fall of prominent retail empires, including Sir Philip Green's Arcadia. My comprehensive understanding of the intricate workings of the retail sector allows me to provide insightful analysis and context to the recent events surrounding the closure of Arcadia's Outfit operation.
The decision to close down the Outfit operation, encompassing all of Sir Philip Green's retail brands like Topshop, is a strategic move by the administrators, Deloitte, to navigate the fallout from Arcadia's collapse. The closure, resulting in the loss of over 700 jobs, is a testament to the challenges faced by traditional brick-and-mortar retail in the wake of the COVID-19 pandemic.
The Outfit operation, with its 21 sites primarily situated in out-of-town shopping destinations, reflects the broader trend of evolving consumer preferences and the shift towards online shopping. The 714 employees, currently on furlough, symbolize the human impact of these structural changes in the retail landscape.
Simultaneously, the closure of an additional 10 Arcadia stores as leases expire underscores the complexity of managing a retail portfolio, especially during times of economic uncertainty. The fate of Arcadia's stores, including iconic brands such as Dorothy Perkins, Burton, and Wallis, hangs in the balance as administrators work to find buyers for the remaining operations.
While the Evans brand found a lifeline through acquisition by City Chic Collective, the exclusion of its physical stores from the deal highlights the challenges faced by traditional retail outlets grappling with COVID-19 restrictions.
Looking ahead, potential buyers, including Next and JD Sports, are engaged in competitive bidding for Arcadia's brands, with Topshop emerging as the most valuable asset. The outcome of these negotiations will not only determine the future of these iconic brands but will likely lead to further job losses as new owners rationalize operations in the current market landscape.
In summary, the Arcadia saga serves as a microcosm of the broader challenges facing the retail industry. The interplay of economic downturns, shifting consumer behavior, and the digital transformation of commerce underscores the need for adaptability and strategic foresight in the ever-evolving world of retail.
