On Wednesday Sir Philip Green’s retail empire is facing a make or break vote of its future as the company is seeking approval for restructuring plans.
Last week the first Company Voluntary Arrangement (CVA) was adjourned as several landlords intended to oppose the plans, that would include at least 23 store closures.
It is thought that Intu are planning to vote against the rescue plans on Wednesday, which could mean Arcadia group could fall into administration.
Arcadia who own Topshop, Burton, Wallis, Evans and many other brands employ 18,000 staff in total. Last week’s vote was postponed after some landlords refused to back the proposals.
Arcadia’s initial proposals would see shop owners facing rent reductions of between 30% and 70%, this will now be reduced down further to a range of 25% to 50%.
One landlord told the Press Association that Arcadia’s CVA plans are different from the previous plans.
He said, “There was some sympathy for Debenhams.
“Whereas here you’ve got a bigger pool of potential tenants. You’ve got more options so it’s easier to vote against it.
“Not that many people are that emotional about it. There’s no tears for Philip Green.”
Kelly Tolhurst, business minister told the Commons on Tuesday, answering a question from Labour’s Jenny Chapman said, “We stand ready to do what we can along with my colleagues in MHCLG (Ministry of Housing, Communities and Local Government) if closures occur.
“We are working with the Retail Sector Council and we’re committed to making sure we are working with the retail sector and high streets to make sure we can really truly grow our high streets and protect retail for the future.”
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