Frasers confirms Arcadia interest, loan offer is declined
Frasers Group has confirmed that it would be interested in buying some or all of Arcadia's brands if the struggling business enters administration as expected.
The news came as it also confirmed on Monday that it had made the offer of a £50 million emergency loan to Arcadia in order to help it avoid administration. But it later said the loan offer had been declined.
While that offer had been dismissed as a stunt by some, it seems that the ever-acquisitive Frasers is genuinely interested in getting its hands on some of the popular labels that Arcadia owns. They may be less successful than in their glory days, but Topshop and Topman, as well as Miss Selfridge, Dorothy Perkins, Evans and Burton, still account for a huge number of sales in the UK fashion sector.
In a short stock exchange statement, the Mike Ashley-helmed company said: “Frasers Group notes recent press reports concerning the potential provision of emergency funding by the company to the Arcadia Group. 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.
“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”.
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