Two US landlords, Vornado and Caruso, have withdrawn their legal challenges against Arcadia Group’s company voluntary arrangements.
They claimed Arcadia “manipulated and gerrymandered” its CVAs in the UK to effect the “complete forfeiture and deprivation” of their rights. The group filed a legal challenge against Topshop’s liquidation in the US in a bid to recoup losses from the closure of 11 stores, which they claim in to be in excess of £100m.
Arcadia group said that following “significant and constructive dialogue” with the landlords which had challenged two of the group’s CVAs, they have now agreed to withdraw their challenges. The group said there are now no challenges to the CVAs.
Ian Grabiner, CEO of Arcadia Group, said: “With these legal challenges now withdrawn all the components of the CVAs can now be implemented. On behalf of the board, I would like to thank all of our staff, customers and creditors for their loyal support during this tough period for retail businesses. We can now look forward to implementing our strategy and delivering our growth plan for the group.”