Arcadia Group apparel suppliers call on administrators Deloitte LLP to ensure all payments owed for orders are fulfilled
In November 2020, Arcadia Group - whose brands include Topshop, Burton and Dorothy Perkins - went into administration, owing payments amounting to millions of pounds to its global apparel suppliers. Arcadia Group reportedly cancelled over £100 million of orders during the COVID-19 pandemic and offered to accept orders that were in transit during March at a 30% discount.
The Istanbul Apparel Exporters Association and other apparel suppliers to Arcadia Group are calling for Deloitte LLP - as Arcadia Group’s appointed administrators - to ensure all payments owed to Arcadia Group’s apparel suppliers are fulfilled. Suppliers claim Deloitte has not been clear as to if and when they will receive payments owed, while those owed payments for orders in transit as of December 2020 say Deloitte offered to accept those orders at 20% of the invoice price. Non-payment of orders or reduced payment of orders to apparel suppliers have a direct impact on the human rights of garment workers who have been producing, and continue to produce for Arcadia Group brands.
In January 2021, Business & Human Rights Resource Centre invited Deloitte LLP to respond; its response is provided below.