Intu to oppose Arcadia’s rescue plan in creditor meeting

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Intu Arcadia
// Intu opposes Arcadia’s rescue plan
// Intu will have biggest say in tomorrow’s creditor meeting, accounting for 15% of the vote
// If the vote fails, Arcadia is expected to fall into administration on Wednesday evening

Arcadia Group has been told that its rescue plan will be opposed by its second-biggest landlord Intu this Wednesday, which is likely to affect the company’s future.

Arcadia requires the support of 75 per cent of creditors at the rescheduled vote which is due to take place tomorrow, as the company inches closer to the brink of administration, putting 18,000 jobs at risk.

Intu, which owns Lakeside and Trafford Centre has told Arcadia that owner Sir Philip Green’s attempted deals to win over property-owners has not convinced the landlord giant to support a last-minute CVA rescue deal, Sky News reports.

Intu currently owns 35 Arcadia shop units across the UK with Topshop accounting for 70 per cent of units, and is due to have the biggest say in tomorrow’s creditor meeting, accounting for 15 per cent of the vote across six separate CVA proposals.

Furthermore, Intu’s decision to oppose the rescue deal means it is unlikely that Arcadia will win the vote despite other major landlords expressing support.

Arcadia – which owns Topshop, Topman, Burton, Dorothy Perkins and Miss Selfridge – revealed its plans on Friday to reduce the severity of proposed rent cuts, resulting in a three-year period cost of around £30 million.

Meanwhile, a source close to Intu told Sky News that the shopping centre owner believes it is better off with taking its chances with an administration process for Arcadia.

Landsec, British Land and Hammerson are believed to be voting in favour of Arcadia.

However, if the vote fails, Arcadia is expected to fall into administration on Wednesday evening, which means over 9500 pension scheme members are likely to require the support of the Pension Protection Fund.

Deloitte is believed to be on standby to act as administrator, according to creditors.

Under Arcadia’s proposals, around 50 stores will close which will result in hundreds of job losses.

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