Arcadia restructuring details revealed

The group, which is owned by Sir Philip Green and comprises brands including Topshop, Miss Selfridge and Wallis sent a company voluntary arrangement (CVA) proposal to landlords last week, The Sunday Times has reported. 

The proposal detailed that if approved, the CVA would result in 57 store closures. It also revealed that Arcadia’s total sales dropped by 10.5% to £1.7bn in the year to August 2018. Like-for-like sales fell by 7.5%. 

The document outlined that Green is considering the sale or closure of Arcadia’s international businesses, most of which are loss-making. 

Arcadia has 571 stores and 388 concessions in its UK portfolio. Green has pledged to invest £100m to revamp stores – the first half already secured as a loan. He has offered landlords 10% equity from any future sale of the business. 

To pass the CVA, Green will also need to gain the support of the pension fund, who he has offered the freehold of Topshop’s flagship Oxford Street store. However, this has been heavily mortgaged, which reduces its value.

Arcadia declined to comment.