Arcadia Group Protective Awards Claim

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High Street Empire, Arcadia Group has gone into administration, putting approximately 13,000 jobs at risk of redundancy as administrators attempt to find a buyer.

Arcadia Group Protective Awards Claim

It is reported that the retail giant has collapsed following failed attempts to borrow an emergency £30m loan from potential lenders, which could have helped the business through Christmas. Arcadia Group owns brands such as Topshop, Dorothy Perkins and Burton.

Over the last few years, the Group’s well-known brands struggled to compete against online-only fashion retailers and the Covid-19 pandemic had a significant impact on trading across the brands with the majority of its employees placed on the Government’s Furlough Scheme during the national lockdowns.

The retail giant operates from 444 sites in the UK as well as online. At present there are more than 9,000 staff on the Government’s furlough scheme.

Arcadia Group Redundancies

Unfortunately, there could be approximately 13,000 jobs at risk if administrators fail to find a buyer for the businesses.

When a company goes into administration, it is worrying time for those involved especially employees, with many panicking about what will happen next.

Although the future of the company may be uncertain, it doesn’t mean it will cease trading immediately and administrators have a period of time to try secure a buyer for the business.

However, if a buyer cannot be found for the company then the administrators may begin to make employees redundant.

Make a Protective Award Claim

A business must follow the correct procedures regardless of the situation. Whether they are in administration or not, an employee’s rights remain the same.

When there is a proposal to make 20 or more employees redundant from one workplace, it is a legal requirement for the employer to arrange a consultation process with employee representatives to inform them they are at risk of redundancy and consider ways of avoiding redundancies, reducing the numbers or mitigating the circumstances. Failure to do this can make employees eligible for a protective award claim.

If you’re a former employee of Arcadia Group and have been or could be made redundant without a consultation process then you may be entitled to make a protective award claim.

A protective award is a claim for compensation of up to a maximum of 90 days’ gross pay. Where a company is insolvent, up to 8 weeks of these awards can be paid by the Insolvency Service. To check if you’re eligible to make a protective award claim please use our redundancy eligibility checker or contact our Employment Department on 033 3344 9600. For more information, please read our redundancy FAQs.

Experts in Protective Award Claims

Morrish Solicitors specialises in Employment Law, including complex protective award claims. Our Employment Solicitors have represented thousands of individuals with a successful history of recovering compensation on their behalf. Contact us on 033 3344 9600 or simply email info@morrishsolicitors.com with your request.

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