Fat Face is on the verge of being taken over by its lenders, that include banks and debt funds, in a debt-for-equity swap designed to drastically reduce the firm’s borrowings and help it weather the coronavirus storm.
The owners of fashion businesses like River Island, The Edinburgh Woollen Mill Group, Arcadia, Charles Tyrwhitt, New Look and Monsoon Accessorize have all seen their estimated personal wealth fall over the past year.
Debenhams has reached a deal with its landlords that will see 120 of its shops continuing to trade once the retail lockdown ends. But seven of them are set to close. Negotiations around its other branches are continuing.
Arcadia is reportedly racing to raise extra cash as the coronavirus crisis adds to its existing problems. A report has said that it’s seeking to borrow £50m against its distribution centre in Northamptonshire.
It's believed that Arcadia could need to close many more stores than it had planned to as the coronavirus crisis continues to crush UK fashion retail. Its 2019 CVAs included clauses allowing extra closures to happen.