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Topshop’s Oxford Street store goes up for sale at almost £420 million

Topshop’s Oxford Street store goes up for sale at almost £420 million
Topshop’s Oxford Street store goes up for sale at almost £420 million

British multinational fashion retailer Topshop’s prime location of Oxford Street store has reportedly gone on sale for a sum of nearly £420 million. The move represents the most recent step in the tear down of Sir Philip Green’s retail empire.

Buyers are being sought for the site by Eastdil Secured, a US property investment bank, following the collapse of Green’s company, Arcadia, in November 2020.

According to reliable sources, the PE firm Apollo will secure the first £311.6 million of a sale of the property as it was the senior secured creditor of Redcastle Limited, the Arcadia firm which is the official owner of the building. The pension fund of Arcadia is the second secured creditor, with a deficit of £185 million, as per the proposals of the administrators.

It is to be noted that the change in holding will come at a time of turmoil on Oxford Street, with John Lewis and Marks & Spencer among the large shops in search of redesigning their properties in light of the shift towards online sales.

Back in February 2021, online retailer, Asos, had reportedly purchased the Miss Selfridge and Topshop brands for a sum of £330 million. The company, however, did not buy any stores. Furthermore, online fashion competitor, Boohoo, paid a sum of £25 million for the Burton, Dorothy Perkins, and Wallis brands.

The administration of numerous parts of Green’s empire has even comprised the sale of superyacht-style furniture from the boardroom of Arcadia.

For the record, administrators at KPMG have named the sale process as Project Infinity. These administrators were appointed for overseeing Redcastle. As recently as two years ago, the value of the building was about £500 million. However, the COVID-19 pandemic has advanced the shift towards online shopping, indicating that there has been a fall in the values of commercial property.

Source credit: https://www.theguardian.com/business/2021/may/02/topshops-top-shop-goes-up-for-sale-in-latest-blow-for-philip-green

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