Arcadia looks to win over landlords with improved CVA terms
Having failed to gain the required support from landlords earlier this week, Philip Green's Arcadia Group said on Friday that it had improved the terms of its company voluntary arrangements.
The group, which had previously requested a rent reduction of between 30% and 70% across 194 locations over a three-year period, is now asking its landlords to cut rents by a more modest 25% to 50%. The cost - around £9.5m in the first year - will be funded by Philip Green's wife, Lady Green.
Arcadia said that landlords who have already voted in favour of the CVAs will also benefit from the improved terms.
Chief executive officer Ian Grabiner said: "Having already secured the support of our pensions trustees, trade creditors and a significant number of landlords, we hope these final revised terms will ensure the majority of landlords support the CVA at next week’s vote.
"Their support is vital for the long term sustainability of the group, our 18,000 employees and our extensive network of loyal suppliers."
Landlords are due to vote again on 12 June. If the deal isn't approved, Arcadia said it's likely to enter administration.
Arcadia owns the High Street fashion brands Topshop, TopMan, Miss Selfridge, Evans, Wallis and Dorothy Perkins.