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No one except Sir Philip Green, his wife, Lady Tina Green, and their accountants know exactly how wealthy the self-crowned “king of the high street” really is. But there is one thing that everyone can be sure of: Greens are much less wealthy than they were before.
The couple, who own the Arcadia retail empire that collapsed in administration on Monday, were reportedly the fifth richest person in the UK in 2006 with an estimated fortune of £ 4.9 billion, according to the Sunday Times Rich List for this year.
A large chunk of that money came from a £ 1.2bn dividend in 2005, the largest in British business history. No tax was paid on the dividend paid to Tina Green due to her tax-free Monaco base.
Since then, the Greens’ fortunes have waned. In the latest edition of the Rich List, published in May, the Sunday Times stripped the couple of their billionaire status, estimating their fortune had dropped to around £ 950 million.
Their wealth is likely to have shrunk even further as the Arcadia Group, which includes the Topshop, Burton and Dorothy Perkins chains, has experienced a sales collapse due to the pandemic and coronavirus shutdowns.
The company said the pandemic had “had a material impact on trade in all of our businesses.” Most of Arcadia’s sales come from its flagship stores, while its more agile rivals have embraced online shopping and reported extraordinary profits during the pandemic. Most of Arcadia’s 13,000 employees are being supported by the taxpayer through the government leave scheme.
Arcadia had already been through serious financial difficulties, as the loss-making company was saved from collapse in June 2019 thanks to a settlement with creditors.
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In May, compilers of the Sunday Times Rich List described Arcadia Group as “useless” due to huge debts. The couple’s stake in the business had been valued at 750 million pounds just 12 months earlier. It was the first time in 17 years that Green has not been listed among the UK’s billionaires.
“The champagne lifestyle continues for Green, 68, based in Monaco, and his family,” said the newspaper entry for Green. “While its Arcadia retail empire faces a bleak future.”
Robert Watts, the compiler of the list, said: “Sir Philip Green may have held on to his knighthood, but we can no longer justify his status as one of the UK’s billionaires. This is the first time since 2002 that he is not in the top tier of UK super rich people. “
