Plans for an emergency multimillion-pound loan to Sir Philip Green’s struggling Arcadia Group have reportedly fallen through.
Sir Philip’s retail empire, which includes the Topshop, Dorothy Perkins and Burton brands, has been revealed to be on the brink of collapse with around 15,000 jobs at risk.
Senior sources at the company have told the BBC they do not expect a last-minute rescue deal, which had been flagged by Mike Ashley’s Frasers Group.
Arcadia Group will enter administration on Monday, the broadcaster said, with Deloitte to be appointed as administrators in the coming days.
The offer from Frasers Group, which runs Sports Direct and House of Fraser, amounts to a £50m loan, Mr Ashley’s company confirmed.
Frasers Group said: “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.”
Sky News quoted Chris Wootton, Frasers’ chief financial officer, as saying: “We hope that Sir Philip Green and the Arcadia Group will contact us today to discuss how we can support them and help save as many jobs as possible.”