Mazars has been appointed the liquidators of Arcadia Group, with accountants from the firm looking to recover at least £30m for creditors.
It comes after the former fashion giant owned by Sir Phillip Green entered into administration last November. The administrators, Deloitte, have already been able to recoup nearly £250m.
This has mainly been achieved through its sale of some of Arcadia’s biggest brands - Topshop, Topman, Miss Selfridge and HIIT - to online retailer Asos for £295m. Fellow online retailer Boohoo, meanwhile, was able to acquire Burton, Dorothy Perkins and Wallis for £25.2m.
Additionally, according to the Financial Times, specialist recovery firm Hilco auctioned off much of the contents of the group’s headquarters, based in the West End in London, earlier this year. The proceeds of these sales are, however, still to come through.
The accountants from Mazars are now looking to recover another £30m, at least, with this coming largely from reconciling intercompany loans and winding up 21 firms that were part of Arcadia.
The firm says this process could take up to a year, with HMRC likely to be the main beneficiary of the process - however it’s unlikely to receive the £44m it’s owed.
Joint liquidator Adam Harris said: “The liquidation of Arcadia companies is a large and complex undertaking, and our team will draw on its collective experience to maximise return for creditors, including HMRC.
“Over the coming months our aim is to repay as much as possible of the group’s outstanding unpaid VAT liability.”
It has been reported that Arcadia collapsed with debts of £750m, with the Telegraph saying that brands Topshop and Topman failed with gross liabilities of more than £550m. Multibrand chain Outfit, meanwhile, had debts of £80m.