Sir Philip Green's retail empire needs rescue vote to stay afloat
Today (June 12), landlords and creditors are meeting in London to vote on the revised proposals to rescue the Arcadia retail group.
Sir Philip Green’s brands include Topshop, Miss Selfridge, Evans and Burton. Last week, Green’s proposals were postponed following landlords refusing to back.
One of these was shopping centre, intu, which is planning to vote against the rescue plans later on. Green has warned, if these are not approved, Arcadia could fall into administration.
In May, Arcadia announced that it was in serious trouble and could be facing “significant liquidity issues”.
It is said to be struggling to pay fixed charges of £100m a year, with earnings in 2019 expected to be only £30m, down from £219m two years ago.
Sir Philip has proposed implementing a Company Voluntary Arrangement (CVA) to save the business.
Yet creditors must approve not one, but seven different CVAs, in order for the business to survive, as Arcadia’s companies are interlinked.
Sir Philip would invest £50m into the business.
He has also pledged to increase net pension contributions over three years, and aims to give landlords a 20 per cent stake in Arcadia - but this is only if it is sold.
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