Arcadia chairman stands down following CVAs
Written by Hannah McGrath
Arcadia has confirmed that its interim chairman Jamie Drummond Smith resigned after creditors approved a series of Company Voluntary Arrangements (CVAs).
Philip Green’s embattled retail empire passed a total of seven CVAs in June, aimed at shoring up the financial future of its stable of High Street brands, including Topshop, Dorothy Perkins and Burton.
A document filed with Companies House shows that Drummond Smith, a former restructuring partner at Deloitte, resigned last week. A spokesman for Arcadia said that he joined the firm on an interim basis in April in order to steer the group’s plan for restructuring.
Earlier this week Arcadia denied reports that it is gearing up to sell off brands including Topshop and Dorothy Perkins, as the company embarks on a plan aimed at shoring up its financial future.
The company said that reports it had begun the process of separating functions such as IT and human resources so that they could be sold off were “wholly inaccurate and unfounded”.
However, confirmation of Drummond Smith’s resignation, just a week after further filings with Companies House revealed that David Shepherd has stepped down as chief operating officer after 25 years with the company, will increase strain on an organisation that is battling to turnaround its fortunes.
The High Street behemoth has the green light for seven CVAs, allowing the company to begin rent renegotiations with landlords and close around 23 stores.
Ian Grabiner, chief executive of Arcadia, said “Jamie was appointed on an interim basis to assist the board through the restructuring options for the group.
“Following the successful completion and approval of the Group’s CVAs, Jamie has stepped down from his role; on behalf of the board I would like to thank Jamie for his support and wish him well for the future.”