British retailer Next, US investor plan joint bid for Arcadia
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Fashion retailer Next is in talks with American investment firm Davidson Kempner Capital Management for a joint bid to gain control of Arcadia fashion group, which collapsed into administration last month, Sky News reported on Friday.
The two companies were “likely, but not certain” to bid for Arcadia ahead of a revised deadline next Monday, the Sky News report added, citing sources.
Under the plans being discussed, Davidson Kempner would provide the majority of the funding required to complete a takeover, Sky News reported.
Next and Davidson Kempner Capital Management did not immediately respond to requests for comment.
Arcadia’s collapse into administration in November put over 13,000 jobs at risk, with the company becoming one of the UK’s biggest corporate casualties of the COVID-19 pandemic.
The fashion group, whose brands include Topshop, Topman, Dorothy Perkins, Wallis and Miss Selfridge, trades from 444 leased sites in the United Kingdom and 22 overseas.
The Daily Telegraph earlier this month reported Authentic Brands was planning a takeover of Arcadia Group, which had declined sportswear group Frasers’ offer of a “lifeline” loan of up to 50 million pounds.
Questions & Answers
Q.Which companies are reportedly planning a joint bid for Arcadia Group?
Which companies are reportedly planning a joint bid for Arcadia Group?
Fashion retailer Next is in talks with American investment firm Davidson Kempner Capital Management for a joint bid. Sky News reported the two companies are likely, but not certain, to make an offer.
Q.What is Davidson Kempner Capital Management's role in the potential takeover?
What is Davidson Kempner Capital Management's role in the potential takeover?
Under the plans being discussed, Davidson Kempner Capital Management would provide the majority of the funding required. This would complete the takeover of Arcadia Group.
Q.Which Arcadia Group brands are mentioned in the article?
Which Arcadia Group brands are mentioned in the article?
Arcadia Group's brands include Topshop, Topman, Dorothy Perkins, Wallis, and Miss Selfridge. The company operates from 444 leased sites in the UK and 22 overseas.
Q.Has any other company shown interest in acquiring Arcadia Group?
Has any other company shown interest in acquiring Arcadia Group?
The Daily Telegraph earlier reported Authentic Brands was planning a takeover of Arcadia Group. Frasers' offer of a lifeline loan of up to 50 million pounds had previously been declined.