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.
A group of Arcadia’s landlords, including Hammerson and British Land, are demanding better terms ahead of crunch restructuring talks.
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.
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