// Sir Philip Green considers breaking up his Arcadia Group retail empire
// Green begun laying the groundwork to split & sell parts of the company over a period of time
// Arcadia CEO Ian Grabiner reportedly convinced Green
Sir Philip Green is reportedly considering breaking up his Arcadia Group retail empire to prepare for a potential sale of some of its biggest brands.
Green has began laying the groundwork to split and sell parts of the company over a period of time, in a move that could break up the parent company some of the UK’s biggest retailers such as Topshop, Miss Selfridge, Dorothy Perkins, Burton and Wallis, The Sunday Times reported.
Arcadia chief executive Ian Grabiner reportedly convinced Green the strategy was better than keeping the group together.
He is also reportedly overseeing the planning work, according to The Sunday Times.
However, Arcadia denied the report.
“Following the formal completion of the CVA process last week, the board is now fully focused on implementing its turnaround plan across all its brands,” it said in a statement.
“The article in today’s Sunday Times is wholly inaccurate and unfounded. It was written without any attempt to contact the company or any of its advisers.”
According to the report, Arcadia has already started to untangle shared functions such as IT and HR for the break up.
The news follows Arcadia’s declining sales and profits after the billionaire owner’s under-investments in the company struggled to keep it up to speed with stiff competition from online retailers.
The group managed to avoid collapse back in June after creditors approved a major CVA scheme, which would see it closing 50 of its 570 stores, resulting in 1000 job losses.
The rescue plan involved seven CVAs – allowing the business to renegotiate debts – which required approval of 75 per cent of the creditors.
Meanwhile, in the US, Arcadia faced legal challenges from two property groups contesting the outcome of some of its CVAs.
Green is currently waiting to clear the air with US landlords before proceeding to the separation, according to The Sunday Times.