Arcadia Group CVA challenges withdrawn
Written by Hannah McGrath
Arcadia Group has announced that two US landlords have withdrawn their challenge to a proposed Company Voluntary Arrangement (CVA) aimed at shoring up the financial future of Philip Green’s retail empire.
The High Street behemoth - which includes Topshop, Topshop, Burton and Dorothy Perkins - won the greenlight for a total of seven CVAs from creditors in June, allowing the company to forge ahead with rent renegotiations with landlords and plans to close around 48 stores.
The plans pulled the group back from the brink of administration, which would have put up to 18,000 jobs at risk.
However, in July, US property group Vornado launched a challenge to two of the CVAs related to Arcadia Group and Topshop Topman.
This morning, the group confirmed that “following significant and constructive dialogue” the two US landlords had now agreed to withdraw their challenges.
As a result, there are no outstanding challenges to the CVAs and Arcadia can now go ahead with the plans.
Ian Grabiner, chief executive of Arcadia Group, said: “With these legal challenges now withdrawn all the components of the CVAs can now be implemented.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.”