Arcadia workers' fate in limbo as landlords push Green on CVAs
The fate of 18,000 workers at Philip Green's Arcadia retail empire hangs in the balance after a crucial vote on the group's restructure was postponed on Wednesday.
Former billionaire Green is begging landlords to cut rents, saying Arcadia would fall into administration if they did not agree to Company Voluntary Agreements (CVA).
Creditors met in London on Wednesday to vote on the deal, but a majority of landlords held out, despite personal pleading from Green. The vote has been postponed until June 12.
Ian Grabiner, chief executive of Arcadia, said: "It is in the interests of all stakeholders that we adjourn today's meetings to continue our discussions with landlords.
"We believe that with this adjournment, there is a reasonable prospect of reaching an agreement that the majority of landlords will support."
Arcadia owns the High Street fashion brands Topshop, TopMan, Miss Selfridge, Evans, Wallis and Dorothy Perkins. It wants to close about 50 of its 570 UK stores and cut rents on up to 200.
Independent retail analyst Nick Bubb praised landlords “prepared to call [Green’s] bluff that Arcadia would go into administration tonight if the CVA wasn’t railroaded through”.
On Tuesday Arcadia won the support on Tuesday of the Pensions Regulator, its pension fund trustees and the Pension Protection Fund after the Green family and Arcadia pledged to put a total of £385m into the pension over three years.