Sir Philip Green calls in property advisers for Arcadia amid CVA rumours

Arcadia property
// Arcadia Group appoints GCW to represent it in discussions with landlords across store portfolio
// Arcadia is thought to be mulling a restructure, which could be in the form of a CVA
// Arcadia has already called in advisers from Deloitte to review the business

Arcadia Group has lurched further towards a potential CVA after boss Sir Philip Green appointed property advisers to handle talks with landlords.

London-based GCW has been appointed to represent Arcadia during discussions with landlords across its store estate as the retail empire reportedly considers launching a restructuring scheme as early as next month.

Reports also indicated that Green’s firm could pursue this restructure in the form of a CVA, although this would need approval from creditors such as landlords and the Pension Protection Fund.

A CVA would allow Arcadia, which owns Topshop, Dorothy Perkins, Evans, Wallis, Burton and Miss Selfridge, to close down stores, make redundancies and seek rent reductions in order to stay afloat.

Other household name retailers to have launched CVAs in the past year include New Look, Mothercare and Carpetright.

A spokesman from Arcadia Group last week confirmed that the company was in the process of “exploring options” but denied it would lead to a significant number of store closures or job losses.

There was also no mention of a CVA.

“Within an exceptionally challenging retail market and given the continued pressures that are specific to the UK high street we are exploring several options to enable the business to operate in a more efficient manner,” the spokesman said.

“None of the options being explored involve a significant number of redundancies or store closures.

“The business continues to operate as usual including all payments being made to suppliers as normal.”

News of a possible restructure at Arcadia first emerged when Green drafted in advisers from Deloitte earlier this year to produce a review.

The company is understood to have been grappling with challenges on the high street as well as a near-£1 billion pension deficit.

Meanwhile, earlier this week two of the country’s biggest property agencies – JLL and CBRE – said they would not cooperate with Green if he launched a CVA of his retail empire.

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