Credit control outsourcing and the troubled high street
Trouble for Philip Greens Empire Arcadia The troubled Arcadia Group is in the news at the moment as Philip Green attempts to make a deal to save the fashion empire. Arcadia, which owns high street retail brands including Top Shop, Wallis, Dorothy Perkins, Miss Selfridge and Burton is trying to agree a Company Voluntary Arrangement […]
Trouble for Philip Greens Empire Arcadia
The troubled Arcadia Group is in the news at the moment as Philip Green attempts to make a deal to save the fashion empire. Arcadia, which owns high street retail brands including Top Shop, Wallis, Dorothy Perkins, Miss Selfridge and Burton is trying to agree a Company Voluntary Arrangement (CVA) that will help to ensure the group’s survival.
The CVA would mean the closure of 48 stores with the loss of around 1000 jobs. However, due to the complex structure of the group, creditors have to agree on 7 separate CVAs, mostly relating to the company’s properties.
Hopes have been dealt a blow this week though as a vote on the deal has been postponed until next week after some of the landlords, who need to agree to reduce their rents in order for the deal to pass, have rejected the plan. Critics of the plan have voiced their concerns over the long-term feasibility of the plan as it does not address the key branding and operational problems in the company. If the vote does not pass, the group is facing liquidation.
It is no surprise to many that Arcadia finds itself in this position, there has been a stagnation that has affected the whole high street and a fall in the value of the pound impacting the cost of imports and rises in business rates and the national living wage have done little to ease the situation.
Retail and the way consumers shop has been changing for some time and some have said that Philip Green has been too slow to respond to the change. The group is facing fierce competition from more contemporary retailers as well as the large online players like Asos. The speed of change has caught up with and overtaken the group. They have too may unprofitable stores trapped in inflexible leases meaning that they are struggling with overheads that are rising while revenue is falling. It’s not agile enough to respond with any speed to a change in the market. The landlords are questioning why they should take a financial hit if the way that the business is managed, and run does not change.
Arcadia claims to be in serious trouble, facing what it has called ‘significant liquidity issues ’. Firms that do not have sufficient liquidity in their business to react to change can face serious consequences. Agile businesses understand the need to remain liquid and constantly assess and react to changes to their market. They are pro-active in their approach to running the business and the management of their cash flow. Handing over tasks that help to ensure cash flow remains stable, allowing businesses to concentrate on keeping their offer current, makes sense.
Supporting business with effective credit control outsourcing
Partnering with a company with a proven track record of supporting businesses is one way to help your business remain liquid and able to operate in uncertain financial times. At Daniels Silverman we have formed partnerships with many companies who understand this. Working alongside you, as a part of your business, we are able to remove the time spent on chasing invoices and ensuring payment and provide a white labelled credit control service to do this for you.
We put our clients at the centre of everything we do and understand that both your reputation and relationships with your clients are of upmost importance and work hard to protect both. We send polite and friendly reminders when invoices are coming due and ensure that you are paid on time. We can also liaise with your clients to identify any issues they may be having if they are consistently late and attempt to resolve the issue in a professional and ethical manner.
If you are spending time worrying about being paid by your suppliers, you’re spending time chasing invoices, or are struggling to forecast your cash flow, then please do get in touch. Our friendly team would be happy to talk through your requirements with you and see how our services could be of benefit.
Start a web chat or give us a call to discuss with our Business Development team how we help other clients and most importantly how we can help you