Philip Green’s Arcadia Group has received applications from a US property group to challenge two Company Voluntary Arrangements (CVAs) aimed at securing the future of the 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, US property group Vornado has now launched a challenge to two of the CVAs related to Arcadia Group and Topshop Topman.
Responding to the move, Ian Grabiner, chief executive of Arcadia Group, said: “These challenges are entirely without merit and we will vigorously defend them.”
He added: “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 focussed on delivering our turnaround plans.”
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