Arcadia has reportedly struck a deal with HSBC that gives the bank security over several millions of pounds worth of cash deposits ahead of a restructuring of the retailer.
The deal extends existing terms with HSBC, according to This is Money, and could see the bank acting as guarantor in relation to letters of credit to suppliers if needed.
Arcadia’s credit insurance has been cut in recent months.
The retailer is currently in discussions with landlords and a company voluntary arrangement (CVA) is expected to launch in the coming weeks, as Arcadia seeks to close some stores and reduce the rents of others.
Arcadia hired advisers from Deloitte to explore a raft of store closures in January. The group has 571 stores and 388 concessions in its UK portfolio.
Arcardia’s fascias include Burton, Topshop, Evans, Dorothy Perkins, Miss Selfridge and Wallis.