Sir Philip Green is understood to be close to reaching out-of-court settlements of two challenges brought by landlords following its CVA.

The legal challenges to the fashion empire’s CVA had been unsuccessfully brought by US landlords Vornado and Caruso in US courts.

The two landlords claimed that Arcadia had “manipulated and gerrymandered” the CVA to effect the “complete forfeiture and deprivation” of their rights.

A source said their separate challenges to Arcadia’s CVA plan are likely to be withdrawn based on negotiations with Green, according to The Sunday Times.

Arcadia’s CVA proposal to close 50 stores and slash rents of a further 194 was approved in June after failing to win sufficient support from landlords and creditors on its first attempt.

The fashion empire is under significant pressure to bolster its performance following an 86% slump in profits to £30m over the last three years.

CVAs have come under increased scrutiny this year, with Debenhams’ former largest shareholder Sports Direct funding a legal challenge from one of its private landlords, Aubrey Weis.

The challenge is due to be heard in court next month.