Topman, Burton and Dorothy Perkins to close Scottish stores

A total of 23 stores owned by Sir Philip Green's Arcadia group - including six in Scotland - are to close, putting 520 jobs at risk.

520 jobs are at risk across the Arcadia group.

The company's Dorothy Perkins and Burton branches in Aberdeen and Burton and Topman stores in Glasgow are among those set to shut, along with Dorothy Perkins and Burton in Stirling as part of a restructuring plan at the beleaguered retailer.

Arcadia is also to try to cut rents at 194 further sites in a bid to tackle the "highly competitive retail environment".

Sir Philip is to inject £100 million of his own money into the business over the next three years, while Arcadia is to halve its annual payments to the company's pension scheme.

All of the retailer's 11 Topman and Topshop stores in the US are also set to close.

Arcadia hopes to undertake a company voluntary arrangement (CVA), which ringfences the firm in a legally binding agreement with its creditors to allow a proportion of debt to be paid back over time. The deal will be put to creditors at a meeting next month.

Last month, Sir Philip appointed two restructuring specialists on to the board of the firm.

Arcadia chief executive Ian Grabiner said: "Against a backdrop of challenging retail headwinds, changing consumer habits and ever-increasing online competition, we have seriously considered all possible strategic options to return the group to a stable financial platform. This has been a tough but necessary decision for the business.

"We will ensure all potentially affected colleagues are kept fully informed as we seek approval from our creditors on today's CVA proposals."

As part of the plan, Lady Green, wife of Sir Philip and ultimate owner of Arcadia, has offered landlords a 20 per cent stake of any proceeds if the group is eventually sold. Lady Green will also inject £50 million of equity into the business, on top of £50 million she had already loaned the company.

Daniel Butters, partner at Deloitte, said: "Arcadia and its portfolio of iconic fashion brands have faced unprecedented market conditions in recent years, which have significantly impacted the group's financial performance.

"These CVAs will provide a stable platform for Arcadia's experienced and committed leadership team to implement its turnaround plan and ensure the long-term sustainability of the group."

Last month US investor Leonard Green & Partners sold its 25 per cent stake in Topshop and Topman back to the parent company, in a move which Arcadia said simplified its structure and would allow the board to focus on restructuring.

Sir Philip's BHS chain collapsed in 2016, with the loss of 11,000 jobs.

Apprentice star Baroness Karren Brady resigned earlier this year as chair of Sir Philip Green’s retail empire amid allegations of sexual harassment against the entrepreneur. Baroness Brady stepped down from her post at Taveta Investments, which owns Arcadia.