Sir Philip Green's retail empire Arcadia under administration threat
Sir Philip Green’s Arcadia group is facing an important week with creditors soon to vote on the tycoon’s restructuring plans.
This Wednesday (June 5), landlords, along with the Pensions Regulator, have to back his plans to shut stores and cut rents, otherwise the high street retail group could fall into administration.
The Arcadia chain includes Topshop, Dorothy Perkins and Burton. Around 50 UK stores are due to close, with MPs wanting Green to use his own money fund the firm’s pension scheme.
Arcadia has proposed that 23 stores would close as part of the rescue deal (a company voluntary arrangement, or CVA). However, an extra 25 stores are now to close under separate proceedings.
Retail analyst, Richard Hyman, said: “There are big questions over whether Green can make Arcadia a viable business after years of underinvestment.
“He’s also had run-ins with his landlords and the Pension Regulator in the past. Now he’s asking them to believe in him, and it’s a big ask.”
The desperate measures are seen as Arcadia’s ‘final fight’. It is said to be losing out to online rivals such as Pretty Little Thing and ASOS.
The retail group has over 500 shops across the UK and Ireland, employing 22,000 staff. Arcadia also plans to shut all of its 11 Topshop and Topman stores in the US.
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