// HSBC to act as guarantor for Arcadia
// Arcadia has been seeking support from creditors for a CVA
Arcadia has been guaranteed support from HSBC for bank security over deposits worth millions, ahead of the company’s restructure plan.
The deal extends existing terms with HSBC, and will see the bank act as guarantor in relation to letters of credit to suppliers, according to This is Money.
Sir Philip Green’s Arcadia Group retail empire, which includes Topshop and Dorothy Perkins, is currently working to find support from creditors, including landlords and suppliers, for a restructure that could potentially come in the form of a CVA.
Arcadia currently has about 570 British shops, and is hoping to hold the vote within a fortnight.
Arcadia’s credit insurance has been cut in recent months.
Meanwhile, the CVA is expected to launch within weeks, as Arcadia seeks to close some stores and reduce rents of others.
In January, Arcadia hired Deloitte advisers to explore a raft of store closures.