Topshop and Topman to cut logistics ties from Arcadia Group

Topshop and Topman is to separate its logistics operations from the rest of Arcadia Group’s fashion brands, according to a report in The Times.

Arcadia opened a 1.2 million sq ft automated warehouse in Daventry, Northamptonshire, with Topman moving in in July and  Topshop due to go live in the Spring. According to results filed at Companies House the Daventry warehouse came at a cost of £29.4 million.

The Times reported that Ian Grabiner, chief executive at Arcadia, is overseeing projects to untangle shared functions across Arcadia. Brands such as Burton, Dorothy Perkins, Evans, Outfit, Wallis and Miss Selfridge are unaffected.

The group made a £93.4 million pre-tax loss, on a turnover of £1.8bn, for the 53 weeks ending 1 September 2018. During the same trading period Arcadia’s creditors approved a company voluntary arrangement in June, which led to the closure of 48 stores and rent cuts on 194 others.

The Times cited an unnamed source close to Arcadia who was quoted as saying that the warehouse was built to support Topshop’s growing wholesale business and denied that it was developed to facilitate a break-up of the group.

Arcadia Group did not respond to inquiries from LM.

By Michelle Mooney