Sir Philip Green has won a legal challenge against a group of American landlords after a court dismissed their claim to recoup some of their losses from the bankruptcy of Topshop US, which they said was in excess of £100m.
The five landlords, led by Vornado, claimed that Topshop parent company Arcadia Group “manipulated and gerrymandered” its company voluntary arrangement (CVA) in the UK to effect the “complete forfeiture and deprivation” of their rights.
The landlords asked the court to hold Arcadia’s US assets and proceeds from the liquidation in “escrow to stop the company funnelling cash back to the UK”.
However, after winning the legal battle Arcadia is now able to move cash generated from liquidating stock in Topshop’s 11 US stores back to the UK, the Sunday Times reported.
The funds will reportedly be used to repay some of the debts owed to creditors affected by Arcadia’s CVA.
Under the terms of the CVA deals approved by creditors, Arcadia will close all 11 Topshop and Topman stores in the US. The first US Topshop opened in Manhattan in 2009.
The group will also close 23 of its UK and Irish stores. Alongside the CVA, Arcadia plans to put two subsidiaries into administration, resulting in a further 25 UK store closures. Six Miss Selfridge stores and 19 Evans stores will also be affected in the UK.
Arcadia declined to comment.