A host of Britain’s biggest property owners have joined forces to demand a larger equity stake in Arcadia, should the fashion group push forward with a CVA.
The landlord group is poised to draft in advisory firm PJT Partners to handle discussions with the Sir Philip Green-owned group, Sky News reported.
As previously reported, Arcadia has already offered landlords a 10% equity stake in the group if they vote in favour of a potential CVA. But Retail Week understands landlords are seeking a “significantly larger” stake in the group. They also want Green to shell out more than the £50m he has committed to aid the restructuring of the business.
If Arcadia fails to drum up enough support for a CVA, Green and his advisers Deloitte are likely to kick off a sale process.
Arcadia plans to use a CVA to close around 25 stores and slash rents at dozens of other locations. The retailer also hopes to halve its annual £50m contributions to employee pension schemes.
Green has proposed offering Topshop’s flagship store on London’s Oxford Street as security to the pension funds.