The retail group owned by billionaire businessman Mike Ashley said it had offered its struggling rival an emergency loan of up to £50 million ($66 million), amid reports that Arcadia could enter administration Monday.
Frasers Group, which owns companies including Flannels, Sports Direct and Jack Wills, also said it had an eye on an acquisition if Arcadia does collapse.
Though Arcadia has seen its sales plummet during the UK’s second lockdown ending this week, it has been struggling for years, one of many retailers to suffer from the rapid rise of nimble digital rivals. It began working to restructure operations in 2019. The group’s collapse would put 13,000 jobs at risk, while a shortfall in its pension scheme means thousands of employees could suffer cuts in their retirement income.