(Alliance News) - Frasers Group PLC said Monday that Arcadia Group Ltd has declined its GBP50 million loan offer.
"Frasers Group were not given any reasons for the rejection, nor did Frasers Group have any engagement from Arcadia before the loan was declined," the rival retailer added.
Earlier Monday, Sports Direct and House of Fraser owner Frasers Group confirmed that it is interested in any sale process for Phillip Green's Arcadia Group, should the UK retailer fall into administration.
Philip Green's struggling Arcadia Group, which runs the Topshop, Dorothy Perkins and Burton brands, is on the brink of collapse with around 15,000 jobs at risk.
On Friday, Sky News reported that Arcadia could fall into administration as soon as Monday.
Arcadia has been in emergency talks with lenders in a bid to secure a GBP30 million loan to help shore up its finances. If the insolvency is confirmed, it is expected to trigger a scramble among creditors for control of its assets.
"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," Frasers said Monday.
Shares in Frasers Group was 5.4% lower at 423.00 pence each in London on Monday afternoon.
By Paul McGowan; paulmcgowan@alliancenews.com
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Frasers Group (FRAS)
