Arcadia Group’s restructuring could be announced as early as this week, and could potentially include the sale of its international businesses and the closure of nearly 60 Arcadia stores.
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.
- Read more: Arcadia restructuring: who holds the power?
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.
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Readers' comments (2)
Anonymous21 May 2019 10:11 am
Green needs to close many more stores than quoted. This best thing he can do is sell up as retail is collapsing and will never get any better.
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Anonymous24 May 2019 7:56 am
Miss S , Burtons, DPs now on other platforms inc Asos, more will definitely follow, expect big cross pollination across all sectors, it may not be in a document but it's happening already.
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