here’s what comes next for the retailer and its staff

Who are the creditors and will they get their money?

Creditors tend to include landlords, suppliers and banks. They will break down into secured, preferential (employees and pensioners) and unsecured creditors.

But the true extent of who is owed what will not emerge for several weeks. Administrators must publish a list of all creditors and, eventually, how much each can expect to get back.

If Arcadia had gone bust on December 1, HMRC would have been a preferential creditor – meaning they would be entitled to any money above unsecured ones, following a rule change by the Government.

But due to the administration being announced at 8pm on November 30, the taxman remains in the unsecured creditor list.

Is Sir Philip Green a creditor?

It is highly likely the former Arcadia owner and his family will be secured creditors – Sir Philip was a secured creditor for BHS when it was sold for £1 prior to its collapse and entitled to getting repaid first when it went bust.

But it may be politically tricky for him to claim the cash when the Arcadia pension deficit could be in the region of £350 million and 13,000 workers will not know if they have a job next year.

What happens to staff and pensioners?

Staff will be expected to keep working whilst stores remain open and will be paid.

But as the administrators get to grips with the business, job losses are inevitable. The administrators will be responsible for telling staff and will hope any buyer will agree to keep them on.

Most pensioners will be protected under the Government’s Pension Protection Fund (PPF), which is funded in part by levies on other pension funds.