Board to hold crunch meeting over Sir Philip Green’s Arcadia restructure tomorrow
Bosses at Sir Philip Green’s Arcadia are reportedly set to discuss the fate of the troubled fashion firm at a crunch meeting tomorrow.
Read more: Sir Philip Green appoints restructuring specialists to Arcadia's board
The future of the fashion tycoon’s retail chain, which includes brands such as Topshop and Dorothy Perkins, is set to be discussed by directors on Tuesday, according to Sky News.
The talks come amid speculation that Green is mulling a controversial insolvency method known as a Company Voluntary Arrangement (CVA) in a bid to reduce rents at a number of his fashion outlets.
One source told Sky News that a decision could be made at tomorrow’s meeting, which the news organisation said would be chaired by Jamie Smith, a corporate restructuring veteran who was appointed to Arcadia's board earlier this month.
If the CVA is given a green light, Arcadia would become the latest in a string of troubled high street retailers looking to reduce rental costs and the size of its estate amid a swathe of industry pressures.
The news comes several months after it emerged that Green has been reportedly looking to sever his ties with as many as 67 Arcadia stores.
According to reports in the FT, a swathe of high street stores and shopping centre stores under Green’s Arcadia group – which includes Topshop and Dorothy Perkins – could be closed amid challenging retail conditions.
Read more: Topshoppers are not put off by Sir Philip Green’s troubles
The newspaper said that Green is sounding out potential occupiers to take over the stores, which cost Arcadia roughly £11m in annual rent.