Sir Philip Green and executives at Arcadia could face a possible investigation into the collapse of the TopShop-owner.
Government ministers suggested executives could be at fault and hinted at a possible investigation into the company’s collapse.
“We know that there’s been a problem with the management there,” cabinet minister Michael Gove told Sky News on Tuesday.
Gove said there had been “a lot of reporting that points out some of the missteps that have been made by the management there” but declined to comment on any individuals. He called Arcadia’s collapse “tragic”.
Business minister Alok Sharma suggested there could be an official inquiry into Arcadia’s demise.
“Within 3 months, the Administrators have a duty to file a report on director conduct with The Insolvency Service – who will then determine whether a full investigation is required I will be keeping a very close eye on this process,” Sharma wrote on Twitter.
He called Arcadia’s collapse “incredibly sad.”
Experts said Arcadia, which owns brands like TopShop, Burton, and Miss Selfridge, had been in decline for many years. The company relied on a strong High Street presence and failed to adapt to the growth on online shopping over the last decade.
Multimillionaire retail tycoon Sir Philip Green and his wife Tina bought Arcadia for £850m in 2002 and owned and ran it until its collapse.
Watch: Arcadia retail group collapses into administration