Crunch time for Sir Philip
Arcadia’s future in hands of landlords
THE future of Sir Philip Green’s retail empire is hanging by a thread ahead of a crunch meeting today.
Failure to win over a small number of big store landlords is set to plunge Arcadia into administration, putting 18,000 jobs at risk.
The threat dramatically increased yesterday after it emerged its largest landlord, Intu Properties, would reject Arcadia’s turnaround plan.
Intu, which owns Manchester’s Trafford Centre and Gateshead’s Metrocentre, has 35 Arcadia stores and commands around 15% of the votes.
Arcadia, which owns Topshop, Topman, Dorothy Perkins, Miss Selfridge and Wallis, needs to convince 75% of creditors to back its turnaround plans.
The Pension Protection Fund said it supported today’s vote, with suppliers also backing the overhaul, through a series of Company Voluntary Arrangements.
But Arcadia could be pushed to the brink if other major landlords vote against.
Sources said the support of landlords is “absolutely paramount”.
Arcadia wants to close 23 stores – with 520 job losses – and slash rents by 25% to 50% on 194 others. A meeting last week was adjourned after landlords – including Intu, M&G, Aviva Investors and Land Securities – refused to back the plans.
Aberdeen Standard and the Crown Estate are also reported to have been against.
But it is believed another big landlord, British Land, backed last week’s vote and will do so again today.
Sources close to Intu say it was rejecting the CVAs because it set a dangerous precedent, with 130,000 workers employed in other shops in its malls.
■ Mike Ashley’s Sports Direct has launched a last-minute legal challenge to restructuring plans at Debenhams, which is set to see 50 stores close.