Arcadia’s plans to shutter stores, slash rents and axe hundreds of jobs have come under fire just hours after they were unveiled.
Sir Philip Green’s fashion empire launched a company voluntary arrangement (CVA) yesterday, which it said would involve 23 store closures, rent reductions at 194 other shops and the potential closure or disposal of all 11 stores in the US.
As part of the restructuring proposals, which will be voted on by creditors on June 5, Arcadia said it would reduce its annual contributions to its pension schemes from £50m to £25m.
Green’s wife and major shareholder Lady Green would pump £100m into the scheme over the next three years to help address the shortfall, as part of the CVA agreement.
But the Pensions Regulator has hit out at those plans, dealing a blow to Green’s hopes of securing the required backing of 75% of Arcadia’s creditor base at the crunch ballot next month.
Please sign in now if you have a subscription or are already registered with us.
Retail-Week.com provides premium, in-depth intelligence that helps retailers judge risks, spot opportunities and identify what they need to do to win in the digital economy.
Register today for a taste of our high-quality intelligence and enjoy:
Discover Retail Week register now
Please note, if you have recently purchased a subscription, it may take a few minutes before your account is updated.