Philip Green’s Arcadia Group is reportedly looking to secure a £30m loan to keep the business afloat.
The retail group – which owns Topshop, Burton and Dorothy Perkins – has approached several potential lenders after its trading was impacted by the second lockdown, according to Sky News.
And, a report by The Sunday Times suggests that plans are being drawn up to place the business into administration.
Arcadia, which employs about 15,000 people, announced 500 head office job cuts earlier this year. And, at the start of the pandemic, more than 14,000 staff were furloughed.
An Arcadia Group spokesperson said: “It is not true that administrators are about to be appointed. Clearly, the second UK lockdown presents a further challenge for all retailers and we are taking all appropriate steps to protect our employees and other stakeholders from its consequences. All our stores in Wales, Scotland and Northern Ireland have now reopened, and we are continuing to trade online through our own channels as well as through those of our partners.”