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Arcadia earmarks 67 stores for exit

Arcadia Group has drawn up a list of 67 stores that it no longer wishes to operate. Advisers are approaching potential occupiers to take over the leases. 

Advisers have said that this is first step in more formal negotiations with landlords over costly rents, The Financial Times has reported.

The proposed stores cost Arcadia about £11m in annual rent. They range from locations in local high streets to shopping centres including Intu Merry Hill in the West Midlands and Intu Metrocentre in Gateshead. 

Last week, the group appointed property consultancy GCW to work with Deloitte on restructuring the business. 

It is increasingly likely that Arcadia will enter a company voluntary arrangement to offload some of its store portfolio. However, property sources told Drapers that landlords were reluctant to negotiate with Arcadia following years of tough rent negotiations.  

Sir Philip Green’s retail group is thought to have around 200 store leases coming up for renewal in the next two years.  

Arcardia’s fascias include Burton, Topshop, Evans, Dorothy Perkins, Miss Selfridge and Wallis. It currently has 570 UK shops. Arcadia has reportedly closed 210 shops over the last two years – around one-fifth of its store portfolio. Earlier this month the retail group said it would not close a “significant” number of stores as part of its restructuring. 

Arcadia has been contacted for comment. Deloitte and GCW declined to comment. 

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