Mike Ashley’s Frasers Group says it would be interested in participating in the sale process should Sir Philip Green’s Topshop empire collapse.
The company released a statement to the City on Monday morning to confirm a story by Sky News that it had offered Arcadia Group a £50m loan to avert it calling in the administrators.
Frasers said it was awaiting a “substantive response” to its proposal and terms.
Sky’s City editor Mark Kleinman revealed on Friday that Arcadia could call in administrators from Deloitte as early as Monday – placing 13,000 jobs at risk – as the coronavirus crisis wreaks havoc on the high street.
Arcadia was struggling from weak sales before the pandemic and underwent an emergency restructuring last year.
Any collapse would see Mr Ashley, other retailers and hedge funds begin to circle Sir Philip’s brands, which also include Dorothy Perkins and Topman, in a bid to secure an expansion of their own offerings at a knockdown price from administrators.
Frasers said in its statement: “The company can confirm that it has made an offer and provided draft terms to the Arcadia Group for a loan of up to £50m and is now awaiting a substantive response.
“Should the company and the Arcadia Group’s efforts to agree an emergency funding package fail and the Arcadia Group enter into administration, the company would be interested in participating in any sale process.”