Mike Ashley has reportedly offered a £50 million lifeline to keep the Arcadia Group, which is responsible for Topshop, Burton and Dorothy Perkins, afloat.
Mr Ashley’s Frasers Group is set to offer the emergency loan as the retail empire prepares to appoint administrators, Sky News reports.
An industry source has described the collapse of Arcadia, owned by Sir Philip Green, as ‘inevitable’ following a failed bid to secure a £30 million loan. It places the group’s 13,000 workforce at risk.
According to Sky News, Frasers’ chief financial officer Chris Wootton confirmed the offer, saying they hope Sir Philip and the Arcadia Group will contact them ‘to discuss how we can support them and help save as many jobs as possible’.
The proposed refinancing was likely to come in the form of a secured loan aimed at preventing the chain from falling into administration, a source close to Frasers said.
However, an analyst reportedly said the offer ‘sounds like a stunt’.
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