Friday 13 December 2019 12:26 pm

Topshop boss Sir Philip Green bags £310m loan for Oxford Street store

Sir Philip Green has bagged a £310m deal to remortgage the flagship Topshop store on Oxford Street, securing the future of a crucial asset in his struggling retail empire.

Topshop parent company Arcadia Group today said it had completed a four-year refinancing deal with US investment giant Apollo Management.

Read more: Sir Philip Green’s Arcadia confirms new chairman

In September it emerged that the retail group, which also owns Dorothy Perkins and Miss Selfridge, was struggling to refinance the loan secured against its flagship site and would need to raise new funds.

The loan, provided in 2014 by a consortium of banks led by RBS, had been due to expire last June but was extended to December as part of a rescue deal agreed earlier this year.

The fresh deal will come as a huge relief for the fashion boss, who has set out plans to shut dozens of stores and reduce rents after avoiding collapse through a company voluntary arrangement in June.

But Arcadia is still facing a string of challenges on the high street as it battles rising rates and declining footfall amid rising competition from online rivals.

Last month the company appointed Andrew Coppel, former boss of the De Vere hotel and leisure group, as its new chairman as it looks to get trading back on track.

Read more: Arcadia bolsters senior digital team in online sales push

Arcadia reported an operating loss of £138m in the year ending 1 September 2018, its most recent financial filings, and a 4.5 per cent drop in turnover to £1.8bn.

However, the company has denied that it plans to sell off some of its brands in a bid to shore up the business, saying it was instead focuses on its restructuring plans.