How Did Philip Green Make His Money?

How Did Philip Green Make His Money? Philip Green is a British businessman who grew retail company Arcadia Group to a retail giant. He owned high street shops like Topshop, Topman, Dorothy Perkins, and Sears throughout his lengthy career. His business savvy eventually earned him a knighthood, as his peers in the UK dub him the “King of High Street.”

He grew up in an upper-middle-class family, and his father died of a heart attack when he was twelve. Green inherited the family business from his father and started his own business as an Asian jeans importer. He then became chairman and CEO of discount retailer Amber Day before partnering with wife Tina to buy Arcadia Group.

Of course, Tina Green has her own family business, Taveta Investments. Their combined net worth of $1.28 billion places them among the wealthiest couples in Europe. On top of business, they’re deeply involved in charity, politics, and sports. But there’s a growing controversy surrounding them.

Who is this British power couple and why are Philip and Tina Green so stigmatizing?

Why Is Philip Green Famous?

To make a long story short, Green is famous for living a lavish lifestyle. He’s known for falling out with people and had a mixed track record of successes throughout his career. However, by the time he took up several loans to buy distressed retailers and revive them, even his rival Sir Stuart Rose was impressed.

Still, his temperament is what made Green famous, and it’s what made Sir Stuart his rival in the first place. During his second unsuccessful takeover bid of Marks and Spencer in 2004, Green reportedly grabbed the company’s chairman by the lapels.

He is reported to have spent lavishly on himself, taking a private jets between London and Monaco. Green owns a super yacht named Lionheart and often threw expensive parties with entertainment acts featuring stars, such as Beyonce.

His wife is reported to have paid no taxes due to her residence in Monaco. This caused a flurry of activists to protest the man during the Occupy era. More scrutiny built up over how he made and spent his money.

How Did Philip Green Make His Money?

The billionaire couple’s money came from retail. Green successfully bought department store BHS in a $276 million deal. Soon after, the company bought Arcadia through Tina’s company Taveta.  

Soon, he had Beyonce and others signed as celebrity spokesmodels for various retail labels. It became one of the most buzzed brands on the high street.

Not only that, but the Taveta holding company owned the real estate BHS that its other retailers use. That means they earn money from rent payments, regardless of how much the retailer struggles.

At the height of his wealth in 2005, the retail tycoon’s fortune was estimated at around $6.76 billion. This led Green to be recommended for knighthood, which was granted to him in 2006. It seemed like the power couple had conquered the world, or at least the UK’s social scene.

However, the company would hit hard times during the 2008 global recession. BHS lacked investment and direction, and it seemed the company and its leader were all hype as economic gloom hit.

Is Philip Green Still a Billionaire?

Although not as wealthy as they once were, Philip and Tina Green are still estimated as billionaires in U.S. dollars. However, their billionaire status was stripped in the UK, as their assets were estimated at under 1 billion pounds.

Their exact combined net worth is unknown to anybody but their accountants, though there are some things known about their assets. For example, we know about a billion dollar plus dividend payment, along with the couple’s stake in Arcadia Group.

However, that investment that was once valued at $1.03 billion has imploded. The company is buried in debt, and Green nearly lost his knighthood over the debacle. He was forced to pay around $500 million of the $787.97 million pension deficit to remain knighted.

These debts took a massive toll on the couple’s overall worth. This caused them to fall off the country’s billionaire list. However, because the pound is outperforming the dollar, they’re still billionaires in the U.S.

And although BHS faltered, the couple still owns Taveta Investments, which makes money leasing its properties to its own companies. This is a business model that should outlast the retailers themselves, and the retailers are struggling. 

How Much Is Philip Green Worth?

As of December 2020, Philip Green and his wife are worth an estimated $1.31 billion. This is 950 million pounds and is likely to continue shrinking as the company’s retail empire struggles to maintain relevancy during the coronavirus pandemic.

Green and his wife continue living their lavish lifestyle while the bulk of their 13,000 retail employees rely on government assistance. Arcadia is still selling through brick and mortar while its rivals increase revenues through ecommerce.

This is causing even more outrage against the couple from both the media and commoners. It looks bad when you’re celebrated for being a retail tycoon as those retailers you’re leading are sinking fast. The company failed to adjust to the new retail market post-COVID, and it’s quickly being overtaken by more nimble competition.

Arcadia Group’s brands are losing relevancy as its employees struggle to keep up with the economy. The tide has turned against brick and mortar retail, and analysts claim the company’s debt load will likely sink it just like DHS.

To this day, Green clings to a lifestyle unobtainable to the average person. And he’s still a knight, despite many efforts to remove that title from him.

How Did Philip Green Get a Knighthood?

Green was knighted during the 2006 Queen’s Birthday Honours ceremony “for services to the Retail Industry.” The honor was given to him at the height of the company’s fame, and it has been called into question pretty much every year since.

He was recommended for knighthood by Tony Blair, and there have been several scandals since. The collapse of his retail empire is one, accusations of tax evasion are another, and there were also several accusations of improper sexual relations plaguing Green’s name.

These controversies did cause him to almost lose his honorary knighthood before paying back $500 million towards his defunct company’s pension fund. This move went a long way toward restoring the crown’s confidence in Green’s ability to recover the company.

Because of his commitment to paying debts, he holds onto the title into the 2020s (although that could potentially change).

What Does Sir Philip Green Still Own?

Although BHS is no longer part of their holdings, Green and his wife still own Arcadia Group through Taveta Investments.

This company is the umbrella for several high street retailers, including Topshop, Topman, Wallis, Evans, Burton, Miss Selfridge, Dorothy Perkins, and Outfit.

They also continue earning rent payments from their retailers, which is what fuels the bulk of their overall profits. Still, the UK no longer recognizes them as billionaires, and Green’s knighthood may continue to be held under question for the foreseeable future.

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