Intu set to vote against Arcadia CVA as Philip Green’s empire hangs by a thread
Fresh doubts over whether Sir Philip Green’s fashion group can win a crunch restructuring vote today have emerged, as one of Britain’s largest retail landlords looks set to vote against the firm’s controversial insolvency plans.
Intu, a FTSE shopping centre owner, is expected to vote against the proposals for Green’s company voluntary arrangement (CVA), according to Sky News.
The broadcaster said other major landlords such as British Land are understood to be leaning towards backing the CVA plans, but will not decide until the meeting at noon today.
The news throws doubt over whether the embattled tycoon can avoid administration by pushing through a CVA, which would allow it to close more than 20 stores and slash rents at hundreds more.
Arcadia needs over 75 per cent approval from its unsecured creditors today in order to push through its CVA, but despite winning the support of suppliers and pension regulators, it is still not clear whether the group has enough backing from landlords.
If Arcadia, which includes brands such as Topshop and Dorothy Perkins, fails to win enough approval, the group is expected to go into administration, putting thousands of jobs and hundreds of stores at risk.
Last night Arcadia confirmed that Green had reached an agreement with the pensions regulator to inject a further £25m into the retail group’s pension fund.
The extra £25m in the pension fund comes on top of a promise by the Topshop tycoon to inject £360m over the next three years.
“We hope that the landlords and other creditors will follow suit and we can get the company back on a strong footing in all the markets where we trade,” said Arcadia chief executive Ian Grabiner last night.
The Trustees of the Arcadia Pension Schemes added: “The Trustees of the Arcadia Pension Schemes wish to thank Lady Cristina Green for the voluntary £100m cash support that she has announced, which alongside the £210m in security being provided to the schemes materially enhances the security of the benefits of the 9,500 Pension Scheme members. Having engaged extensively with the Pensions Regulator, the Pension Protection Fund and the Arcadia Board to consider its turnaround plan, the total package of support announced provides the best outcome achievable for the Schemes.”
Like a number of high street retailers, Arcadia has struggled to maintain profits in the wake of rising costs and increased competition from online rivals.
Intu declined to comment.