UK fashion retailer Next pulls out of joint bid for Topshop-owner Arcadia went into administration in November, putting over 13,000 jobs at risk
Fri, Jan 22, 2021, 09:26
Shoppers walk past the flagship Topshop in Oxford Street in London, Britain.
Next said on Thursday it had pulled out of the bidding for brands owned by British tycoon Philip Green’s Arcadia Group as it was unable to meet the price expectations of the collapsed fashion chain.
“Next plc announces that it has withdrawn from the process to acquire any, or all, of the Arcadia Group from the administrator,” the company said in a statement.
×
Supporters of Prime Minister-designate Saad Hariri block a road link to Beirut international airport in Beirut, Lebanon, Monday, March 22, 2021. (AP Photo/Hassan Ammar)
1/4
his aerial picture, taken on March 22, 2021 shows a wind farm at sunset in Monterfil, western France. (Photo by Damien MEYER / AFP)
2/4
Visitors wearing protective face masks take photos of blooming cherry blossoms amid the coronavirus disease (COVID-19) pandemic, at Ueno Park in Tokyo, Japan, March 23, 2021. REUTERS/Issei Kato
3/4
A family and dog rescued by a State Emergency Service crew make it to safety after being trapped by rising floodwaters, as the state of New South Wales experiences widespread flooding and severe weather, in Australia, March 23, 2021. REUTERS/Loren Elliott
Davidson Kempner Capital Management LP : Form 8.3 - AA plc
FORM 8.3
A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE
Rule 8.3 of the Takeover Code (the “Code”)
1. KEY INFORMATION
Davidson Kempner Capital Management LP
(b) Owner or controller of interests and short positions disclosed, if different from 1(a):
The naming of nominee or vehicle companies is insufficient. For a trust, the trustee(s), settlor and beneficiaries must be named.
Use a separate form for each offeror/offeree
AA plc
(d) If an exempt fund manager connected with an offeror/offeree, state this and specify identity of offeror/offeree:
For an opening position disclosure, state the latest practicable date prior to the disclosure
Next pulls out of plans to buy Topshop-owner Arcadia
Topshop is set to close its flagship Oxford Street branch (Getty Images)
Next has backed out of plans to buy Sir Philip Green’s collapsed retail empire Arcadia Group, potentially putting up to 13,000 jobs at risk.
In a statement, the high street chain said it had withdrawn from plans to buy the Topshop owner because it was “unable to meet the price expectations of the vendor”.
“Next wishes the administrator and future owners well in their endeavours to preserve an important part of the UK retail sector,” it added.
A consortium led by Next and Davidson Kempner Capital Management, a US investment firm, had been the frontrunner in a potential takeover deal with Arcadia, which collapsed into administration last year.
Retailers across the UK have been struggling for years due to online competition and rising cost like rents and business rates. But the arrival of the Covid-19 pandemic was the final nail in the coffin for many of them.
With non-essential stores forced to close down to comply with and lockdowns and restrictions to curb the spread of the virus - and fewer customers and tourists walking into shops even when they were open - most retailers have seen sales plummet.
While some managed to stay afloat by taking furlough cash, cutting jobs and closing down stores, others have had to call in administrators, put the shutters down for good, or attract bidders.