On the go: Arcadia Group, the struggling fashion empire controlled by Sir Philip Green, can move forward with its restructuring plans after a challenge from US landlords was withdrawn.
The company, which includes Topshop and Burton among its brands, confirmed on Tuesday that, following significant and constructive dialogue with the two US landlords, they have withdrawn their challenges to Arcadia’s company voluntary arrangements.
Following the withdrawal of these challenges, the CVAs can now be implemented in full, the company has stated.
Ian Grabiner, chief executive of Arcadia Group, said: “With these legal challenges now withdrawn, all the components of the CVAs can now be implemented.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.”
Earlier this year, Lady Tina Green, the Arcadia Group’s majority shareholder, agreed to inject an additional £100m into the Arcadia pension funds to help plug the shortfall, with funding of £25m per year for the next three years plus an additional £25m contribution.
She also agreed to invest £50m of equity into Arcadia, in addition to the £50m of funding provided earlier this year, and to fund the cost of the amended rental-reduction terms within the CVA proposals announced in June.
The deal saved the Arcadia schemes from the Pension Protection Fund, but the perilous journey continues.
