The breakup of Philip Green’s Arcadia retail empire has started with the £23 million (€25m - $30.6m) sale of the plus-size clothing brand Evans to the Australian firm, City Chic Collective.
Deloitte, appointed as administrator after Arcadia collapsed last month, said the deal excludes physical stores, with City Chic operating Evans as an online-only operation, including intellectual property, customer base and inventory.
There have also been “significant expressions of interest” for all of Arcadia’s brands, which include Topshop, Wallis, Dorothy Perkins, Burton and Miss Selfridge, Deloitte said, adding that it planned a further update in the new year.
Bids for all the brands are due to be filed on Monday. Potential suitors include the e-tailer Boohoo, Next, and Authentic Brands, the owner of the U.S. department store Barneys. Frasers Group is reported to be interested in Arcadia’s smaller brands.
The administrators said that Evans stores will remain open “for the time being,” but the brand’s sale has raised fears of shop closures and job losses.
Established in 1930, Evans is a specialty retailer of plus-size clothing and footwear. In the financial year to August 2020, its website had 19 million visits and generated around £23 million (€25m - $30.6m) of sales and the wholesale business delivered sales of about £3 million (€3.3m - $4.0m).
City Chic is a collective of customer-led brands including City Chic, Avenue, CCX, Hips & Curves and Fox & Royal. It has a network of 96 stores across Australia and New Zealand, with online operations in those countries and the U.S. It has marketplace and wholesale partnerships with major American retailers and a wholesale business with European and British partners.