Landlord Intu Properties has said it will oppose Arcadia Group’s company voluntary arrangement (CVA) at the postponed creditors’ meeting tomorrow.
The retailer delayed its CVA vote until 12 June to give it time to “conduct further dialogue with a few landlords”, with a view to securing a final decision in favour of its proposals.
Since then, it has revised the rent reductions set out in its CVA proposals, in a bid to win landlord support.
However Intu, which owns around 35 Arcadia retail units across its portfolio of UK shopping centres, said this had not persuaded it to vote for the CVA.
A source close to Intu told Drapers that accepting substantially reduced rents on Arcadia’s stores would be “unfair” to its other retail tenants.
Arcadia needs to secure 75% of creditors’ support to get the CVA through. Intu is thought to account for an average of about 15% of the vote across at least six of the seven separate CVA proposals.
Drapers understands that the meeting will go ahead tomorrow, and Arcadia is still in dialogue with its landlords.
Arcadia declined to comment.