Arcadia’s landlords have been pressing for an equity stake of at least 40% in Sir Philip’s group. The high street tycoon Sir Philip Green is to launch a make-or-break revamp of his Top Shop empire that could see landlords handed a shareholding of more than one-third of the business.
The billionaire tycoon and his advisers are working on proposals to unveil a Company Voluntary Arrangement (CVA) – a form of insolvency mechanism – within a matter of weeks. The scheme, which would require the approval of creditors including landlords and the Pension Protection Fund (PPF), would trigger substantial job losses across the Arcadia business, whose brands include Top Shop, Dorothy Perkins and Miss Selfridge.
Formal discussions with landlords are expected to begin in the coming weeks, with property agents expected to be drafted in shortly to work on the programme. Insiders said on Friday that Arcadia’s chief executive, Ian Grabiner, had indicated in recent days that the company was seeking to launch the restructuring programme in late April or early May.
They cautioned, however, that a formal restructuring could yet be halted or delayed depending upon the progress of talks with stakeholders. The chances of a CVA being approved – as they have been at other struggling retailers, including Carpetright, Mothercare and New Look, during the last 12 months – will hinge on the support of major retail landlords such as British Land, as well as the PPF.
Like many other high street groups, Arcadia has been hit by a toxic cocktail of rising costs and declining sales and profits.
