Arcadia Group has announced they are to close 23 retail stores across the UK as part of a rescue plan for the company, putting 520 jobs under threat.
The closures come as the company has struggled with a challenging retail market, forcing it to restructure its business to ensure long-term sustainability in a highly competitive environment.
'Tough but necessary decision'
The retail group, whose brands include Topshop, Topman, Dorothy Perkins and Burton, is using Company Voluntary Arrangements (CVAs) in a bid to save its empire, but stakeholders will have to agree on plans first.
CVAs are a type of insolvency for troubled businesses which allows rent fees to be cut. There are seven in total and all must be approved by creditors.
As well as the 23 closures in the UK, the proposals will also see rent cut at another 194 outlets to further reduce costs.
The company also plans to close all 11 Topshop and Topman stores in the US.
Among the closures are various Dorothy Perkins, Burton, Topshop and Wallis stores (Photo: Shutterstock)
Arcadia chief executive Ian Grabiner said, "Against a backdrop of challenging retail headwinds, changing consumer habits and ever-increasing online competition, we have seriously considered all possible strategic options to return the Group to a stable financial platform.
"This has been a tough but necessary decision for the business.
"We will ensure all potentially affected colleagues are kept fully informed as we seek approval from our creditors on today's CVA proposals."
The store closures will add to the 200 stores in the UK which have already been shut over the last three years, as retailers struggle with a challenging market.
Full list of Arcadia Group stores set to close
Aberdeen - Dorothy Perkins, BurtonAshton under Lyne - Topshop, TopmanBedford - Topshop, TopmanBluewater - Miss SelfridgeCheshunt - OutfitCork - Dorothy Perkins, EvansDublin - Evans, Wallis (Henry Street)Dublin - Topshop, Miss Selfridge (St Stephen's Green)Dublin - Topshop, Topman (Jervis)Dublin - Wallis (Liffey Valley)Fareham - Topshop, TopmanGalway - Miss SelfridgeGlasgow - Burton, Topman (Buchanan Street)Luton - Topshop, TopmanNewcastle upon Tyne - Outfit (Northumberland Street)Nuneaton - Topshop, TopmanReading - Dorothy Perkins, BurtonSalisbury - Topshop, TopmanSouthend - Miss SelfridgeStirling - Dorothy Perkins, BurtonSwindon - Dorothy Perkins, BurtonSwindon - Miss Selfridge, Wallis, EvansYork - Dorothy Perkins, Burton