Arcadia CVA decision adjourned to June 12

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Sir Philip Green Arcadia
// Arcadia’s meeting to finalise CVA decision adjourned until June 12
// Arcadia has plans to take out a CVA to shut 23 stores, which will result in 520 job cuts
// The CVA will also support rent reductions on 194 additional stores across its UK & Irish operations

Arcadia Group has announced that the final decision on securing CVAs for its company is adjourned until June 12.

The group revealed in a meeting today the decision to adjourn today’s creditors’ meetings in order to conduct further dialogue with a few landlords, with a view to securing a final decision on the seven CVAs.

Arcadia, which is the parent company of Topshop, Topman, Burton, Dorothy Perkins, Miss Selfridge, Wallis and Evans, had plans to take out a CVA to shut 23 stores, resulting in 520 job cuts, as well as rent reductions on 194 additional stores across its UK and Irish operations.

Arcadia’s 11 Topman and Topshop stores in the US are also set to either close down or be sold off.

Another 25 stores under the Evans and Miss Selfridge fascias will shut down as part of separate insolvency proceedings, including the flagship Miss Selfridge store on Oxford Street.

“It is in the interests of all stakeholders that we adjourn today’s meetings to continue our discussions with landlords,” Arcadia chief executive Ian Grabiner said.

We believe that with this adjournment, there is a reasonable prospect of reaching an agreement that the majority of landlords will support.”

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1 COMMENT

  1. I think many landlords won’t play ball given the size of his dividend and given some of the brands are tired and dowdy and not really meeting the retail marketplace of 21st century.

    If Administration comes, it will hit the pension scheme which will then be picked up by the regulator as BHS was with worse terms for the pension holder’s than current.
    Top Shop and Man should be safe to be purchased out of administration may be Miss Selfridge too if it’s dowdy image can be made more asos type of thing.

    DP and Burton forget it, they are tired aging brands with no USP whose core customers are now nearly 60.
    The same with Evans. Evans should be doing well given a large number of plus size women in the UK but this is something Yours has tackled successfully. May be Yours can make a better go of Evans than Arcadia ever did.

    DP and Burton definitely have a limited future I think.

    I think may be an administration might be a blessing in disguise rather than a CVA.

    Arcadia has had no investment in years like BHS before it.
    Property / Commercial landlords want retailers that won’t be a quick fix for a couple of years then go bust again.

    They are also reluctant to push down rents for someone who took £1.2bn dividend in 2005 in the good times on the excuse that it would be unfair to other retailers.

    I’m thinking for some operators Arcadia is no longer a major draw that it once was for them and they have nothing to lose from an administration of the chain as part of the evolution of fashion retail. May be I am wrong but let’s see.

    I can well see that some developers will want 40 per cent of any company that is sold on in terms of equity rather than the derisory 20 per cent Mr Green was offering.

    It’s a case of “Let Green eat cake ” I think. Good luck with the vote. It will be close.

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