Arcadia Group has adjourned today’s creditors’ meeting until next week in order to “conduct further dialogue with a few landlords” with a view to securing a final decision in favour of its company voluntary arrangement (CVA) proposals.
Arcadia has set out seven CVA proposals for different companies within the group, alongside a “comprehensive” turnaround plan which it believes will return the business to growth after a sustained period of declining trading performance. Under the proposals, Arcadia has earmarked 23 out of its total 566 UK and Irish stores for closure. It also proposes rent reductions and revised lease terms across 194 locations.
The CVA creditor vote has now been postponed until 12 June.
The group said it has secured the support of the pension trustees, the Pensions Regulator and the Pension Protection Fund, as well as the “full backing” of its trade creditors and a “significant number” of landlords.
Ian Grabiner, CEO of Arcadia, said: “It is in the interests of all stakeholders that we adjourn today’s meetings to continue our discussions with landlords. We believe that with this adjournment, there is a reasonable prospect of reaching an agreement that the majority of landlords will support.”
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