Arcadia bosses meet to discuss restructure
Written by Hannah McGrath
Bosses at Arcadia are set to attend a crunch meeting today to examine plans for a restructuring of Philip Green’s retail empire.
Directors at Arcadia - which owns High Street brands including Topshop, Dorothy Perkins and Burton - will discuss the possibility of a Company Voluntary Arrangement (CVA) or alternative plans, including an auction of the company, Sky News reported.
A CVA could pave the way for store closures, with the company already drawing up a list of almost 70 units earmarked for possible closure or rent negotiations with landlords.
It is understood that the talks will be chaired by Jamie Drummond-Smith, a corporate restructuring expert, who joined the board last month.
Sky News reported that the CVA would only be triggered if the plans gain the support of at least 75 per cent of Arcadia’s creditors by value. If the restructuring is rejected then it is likely that a sale process for Arcadia would be set in motion.
Arcadia did not immediately respond to a request for comment on today’s meeting, but in a statement on reports that Green was planning a restructure of the company, a spokesman said it was “exploring several options to enable the business to operate in a more efficient manner”.
The company employs around 18,000 people.
The reports of a possible CVA comes after struggling department store Debenhams announced plans to close 50 stores as part of a CVA strategy this week, putting around 1,200 jobs at risk.