UPDATE 3-Philip Green's Arcadia UK fashion group falls into administration

* Deloitte appointed administrator

* Will seek buyers for brands

* Stores continue to trade

* About 13,000 jobs at risk

* Analysts estimate pension fund deficit of 350 mln stg
(Adds UK government reaction)

By James Davey

LONDON, Nov 30 (Reuters) - British tycoon Philip Green's
Arcadia fashion group has collapsed into administration, putting
over 13,000 jobs at risk and becoming the country's biggest
corporate casualty of the COVID-19 pandemic so far.

Deloitte said late on Monday it had been appointed Arcadia's
administrator and would seek buyers for the group's brands:
Topshop, Topman, Dorothy Perkins, Wallis, Miss Selfridge, Evans,
Burton and Outfit.

The group trades from 444 leased sites in the United Kingdom
and 22 overseas.

Deloitte said Arcadia's stores would continue to trade, its
online platforms would remain operational and supplies to
concession partners would continue.

It said no redundancies were being immediately announced.

“We will be rapidly seeking expressions of interest and
expect to identify one or more buyers to ensure the future
success of the businesses," said Matt Smith, Deloitte's joint
administrator.

Green, who was pictured over the weekend in Monaco where his
100 million pound ($133.26 million) super yacht Lionheart is
docked, acquired Arcadia for 850 million pounds in 2002.

He had no immediate comment but his CEO laid the blame for
Arcadia's demise firmly on the pandemic.

"In the face of the most difficult trading conditions we
have ever experienced, the obstacles we encountered were far too
severe," said Ian Grabiner.

Britain's Business minister, Alok Sharma, said the
administration was "incredibly sad news" and the UK government
would support those affected.

While COVID-19 lockdowns pushed Arcadia over the edge, it
has struggled in recent years, underinvesting and failing to
keep pace with competitors in an increasingly online retail
sector.

Its brands were squeezed between the likes of Inditex's
Zara, H&M, and Primark and online-only players ASOS
and Boohoo.

A restructuring deal was approved by creditors last year,
cutting rents and closing stores, but proved only a temporary
respite.

SALE PROCESS

Mike Ashley's Frasers Group said on Monday it was
interested in participating in any Arcadia sale process.

Topshop, once the go-to destination for teenagers and
fashion lovers, is regarded by analysts as Arcadia's most
attractive asset.

Media reports have also identified Marks & Spencer,
Next and Boohoo, as well as private equity players, as
potential bidders for individual brands. All three companies
declined to comment.

Arcadia's collapse could have a knock-on impact on the
future of department store chain Debenhams, which is already in
administration and employs 12,000.

Arcadia is one of Debenhams' biggest concession holders.

Shares in JD Sports Fashion, which has been linked
with a takeover of Debenhams, closed up 5.9%, indicating it was
losing interest. Shares in Frasers closed down 5.7%.

PENSION FUND DEFICIT

Arcadia's workforce also faces uncertainty over a deficit in
the company's pension fund, estimated by analysts at about 350
million pounds.

As part of last year's restructuring Arcadia agreed to
provide 210 million pounds of security over property assets to
the pension schemes, while Tina Green, Philip's wife and the
ultimate owner of Arcadia, agreed to contribute 100 million
pounds to the schemes over three years.

"Philip Green should do the right thing and fill the Arcadia
pension deficit," said opposition Labour Party leader Keir
Starmer.

If he does not pay up, Arcadia's 10,000 pension scheme
members should still receive the bulk of their entitlement
through the government's lifeboat scheme, the Pension Protection
Fund.

Sharma said the administrators had three months to file a
report on the conduct of Arcadia's directors with The Insolvency
Service which will determine whether a full investigation is
required.

"I will be keeping a very close eye on this process," he
said.

Even before the pandemic, bricks-and-mortar clothing
retailers in Britain were facing a major structural challenge
with the economics of operating stores on traditional leases
proving increasingly difficult as more trade migrates online.

Already this year Oasis, Warehouse, Laura Ashley, Peacocks
and Jaeger have fallen into administration.

For a profile of Philip Green click on:

For a Philip Green/Arcadia Timeline click on:
($1 = 0.7504 pound)

(Reporting by James Davey in London
Editing by Estelle Shirbon, Rosalba O'Brien and Matthew Lewis)