Arcadia has denied that Sir Philip Green is planning to break up his retail empire and said the turnaround plan is the key focus, despite a press report saying the firm is already separating shared functions.
American landlords have lost their battle to recoup losses after Topshop USA’s bankruptcy filing. Arcadia can now move cash from its Topshop US liquidation sales back to the UK, along with frozen bank account funds.
US landlord Vornado has suggested Philip Green and his Arcadia empire may have manipulated the results of a CVA vote by increasing its debt owed to suppliers, potentially undermining landlords’ power to block it.
Arcadia is moving fast following the approval of its CVA and it has said it will cut 170 jobs at its HQ. The company is “proposing to make some structural changes in order to support and deliver the turnaround plan.”
Tuesday’s news of an Arcadia pension fund deal seemed to suggest the group’s CVA has a chance of getting through, but a new report says a key landlord will oppose the CVA plan, leaving it on a knife edge.
Double the number of Arcadia shops expected could close with the axe to fall heavily on Miss Selfridge and Evans, the former to lose its London flagship as it can command a rich rent from other retailers.