Philip Green’s Arcadia faces legal battle over restructuring

Philip Green’s Arcadia faces legal battle over restructuring

Philip Green’s Arcadia group is facing a court battle over its plans to reduce rents through a restructuring process.

Landlords and creditors had previously voted to approve a raft of rent cuts to secure the future of the Topshop owner’s retail empire.

However, US property giant Vornado is now challenging two of the seven Company Voluntary Agreements (CVAs).

The legal challenge by the New York-based property group concerns the two CVAs relating to Topshop and Topman stores.

Acadia chief executive Ian Grabiner has dismissed the challenges, describing them as “without merit” and said Mr Green’s group would “vigorously defend” itself.

Arcadia – which also owns Burton, Miss Selfridge and other high street brands – received backing from landlords for its restructuring plans last month.

It meant that landlords would receive smaller amounts of rent on certain properties, with some reduced to half the original price.

The approval of the CVAs confirmed plans to close 23 stores, putting around 1,000 jobs at risk.

Another 11 Topshop and Topman stores in the US were also earmarked for closure.

Mr Grabiner said: “These challenges are entirely without merit and we will vigorously defend them.

“The CVAs are a vital part of our restructuring, putting the business on a firm financial footing and enabling significant investment as part of our growth plans which will ultimately benefit all our stakeholders.

“Our group continues to trade as normal and we remain focused on delivering our turnaround plans.”

Last month, a group of US property companies, including Vornado, contested Arcadia’s decision to put its US subsidiary into administration.

The landlords reportedly claimed that Arcadia “manipulated and gerrymandered” its CVA in the UK to affect the “complete forfeiture and deprivation” of their rights.

- Press Association

More on this topic

Plans for new €75m Lusk Village Quarter including 150 new family homes launchedPlans for new €75m Lusk Village Quarter including 150 new family homes launched

B&Q owner’s profits tumbleB&Q owner’s profits tumble

Investors not sold on H&M revenue growth figuresInvestors not sold on H&M revenue growth figures

Musgrave Group unveils Noel Keeley as new CEO Musgrave Group unveils Noel Keeley as new CEO

More in this Section

Amazon deal with Deliveroo investigated by UK competition watchdogAmazon deal with Deliveroo investigated by UK competition watchdog

Falling fuel costs keep UK inflation at lowest since 2016Falling fuel costs keep UK inflation at lowest since 2016

Significant risks in extremely complex UK border Brexit preparations – watchdogSignificant risks in extremely complex UK border Brexit preparations – watchdog

Global fund managers ignore stock market rally to keep cashGlobal fund managers ignore stock market rally to keep cash


Lifestyle

Can you imagine Spanish churros, Moroccan tagines or even Christmas cakes without its fragrant taste?MIchelle Darmody: Warm smells of cinnamon

Rachel Howard visits the South Moravia region to sample this eastern European country’s finest tipples.They’re big on beer but could the Czech Republic be raising a glass to wine tourism too?

Lisa Salmon catches up with a cardiologist, who explains how a patient’s own stem cells can repair damage from heart disease and heart failure.How stem cells are mending broken hearts

Hannah Stephenson discovers America’s dark past and Martin Luther King’s vision for its future by following the civil rights trail.Charting America’s path to freedom on a road trip through the Deep South

More From The Irish Examiner