Further store closures are expected at Arcadia, as the property-holding companies for Miss Selfridge and Evans teeter on the brink of administration.
Arcadia’s proposed CVA has earmarked 23 UK stores for closure. This includes five Miss Selfridge stores and three Evans stores, which are part of the property portfolio not held within the brands’ property-holding companies.
Miss Selfridge and Evans’ property companies were not included in the CVA as they are “expected to enter insolvency processes in the short term,” the Arcadia CVA document states.
Six Miss Selfridge stores and 19 Evans stores will be affected by the expected administrations of both property companies.
Although the companies are yet to enter administration, three of the Miss Selfridge stores and nine of the Evans stores affected have leases that expire in the next six months, Drapers understands.
It signals the new strategy for Miss Selfridge and Evans which, according to CVA documents “are both proposing to grow their wholesale, digital and concessions businesses.” However, the businesses will retain some degree of high street presence, Drapers understands.
Arcadia’s CVA proposal will be put to a creditor vote on 5 June, and also outlines rent reductions and revised lease terms across a further 194 locations across the Arcadia portfolio.
Green has reportedly offered a further £185m from property assets to help reduce Arcadia Group’s pension deficit in a bid to gain the support of creditors.