Sir Philip Green\u2019s Arcadia Group has announced plans to shut 23 stores in the UK and Ireland, putting 520 jobs at risk, as part of a rescue plan.<\/p>\n
<\/p>\n
Dorothy Perkins, Burton, Topshop and Topman stores have been earmarked for closure as part of a company voluntary arrangement (CVA).\u00a0The retail group\u2019s proposals will also see rent cut at another 194 outlets.\u00a0All of the retailer\u2019s 11 Topman and Topshop stores in the US are also set to close.<\/strong><\/p>\n As part of the plan, Lady Green, wife of Sir Philip and ultimate owner of Arcadia, has offered landlords a 20% stake of any proceeds<\/strong> if the group is eventually sold.<\/p>\n Lady Green will also inject \u00a350m of equity into the business<\/strong>, on top of \u00a350m she had already loaned the company.<\/p>\n Arcadia directors will meet creditors at meetings on 5 June to seek approval<\/strong> for the proposals. Seventy five per cent of creditors will have to approve the plans.<\/p>\n Arcadia chief executive Ian Grabiner said: \u201cAgainst a backdrop of challenging retail headwinds, changing consumer habits and ever-increasing online competition, we have seriously considered all possible strategic options<\/strong> to return the group to a stable financial platform.<\/p>\n \u201cThis has been a tough but necessary decision for the business.<\/p>\n \u201cWe will ensure all potentially affected colleagues are kept fully informed as we seek approval from our creditors on today\u2019s CVA proposals.\u201d<\/p>\n Daniel Butters, partner at Deloitte, said: \u201cArcadia and its portfolio of iconic fashion brands have faced unprecedented market conditions in recent years,<\/strong> which have significantly impacted the group\u2019s financial performance.<\/p>\n \u201cThese CVAs will provide a stable platform for Arcadia\u2019s experienced and committed leadership team<\/strong> to implement its turnaround plan and ensure the long-term sustainability of the group.\u201d<\/p>\n Speculation began early this year that Sir Philip would look to either sell off the company or close stores.<\/p>\n In March, Arcadia confirmed it was exploring options<\/strong> to improve efficiency in the business.<\/p>\n Later that month it hired property advisers to assess its estate<\/strong> while drawing up restructuring plans.<\/p>\n Last month US investor Leonard Green & Partners sold its 25% stake in Topshop<\/strong> and Topman back to the parent company, in a move which Arcadia said simplified its structure and would allow the board to focus on restructuring.<\/p>\n The news comes just weeks after Sir Philip was revealed to no longer be a billionaire for the first time in 17 years by the\u00a0Sunday Times<\/em> Rich List.<\/p>\n His reputation has been left damaged by the 2016 collapse of BHS, which resulted in the loss of 11,000 jobs.<\/p>\n","protected":false},"excerpt":{"rendered":" […]<\/p>\n","protected":false},"author":42,"featured_media":134198,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[10585,6,10494],"tags":[11120,10425,9954,12746,12748,12747,10267,10281,9665,12749],"acf":[],"yoast_head":"\n