Money: Lakeside-owner Intu puts Green’s Arcadia on brink - PressFrom - United Kingdom
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MoneyLakeside-owner Intu puts Green’s Arcadia on brink

10:00  12 june  2019
10:00  12 june  2019 Source:   news.sky.com

Sir Philip Green's flagship Miss Selfridge store in Oxford Circus could be among dozens of Arcadia shops to close

Sir Philip Green's flagship Miss Selfridge store in Oxford Circus could be among dozens of Arcadia shops to close Sir Philip’s Arcadia Group, which includes brands such as Topshop, Burton, Dorothy Perkins and Evans, has been hit by the wider crisis facing the high street as shoppers turn online. Last week Arcadia said it plans to close 23 stores in a restructuring process called a company voluntary arrangement, which allows it to renegotiate rents and shut under-performing shops. The plans will put at least 520 jobs at risk. And now it has emerged Arcadia will close another 25 stores – with the brunt of the closures being forced upon Evans and Miss Selfridge, which appeals to teenagers and young women.

Philip Green ’ s group expected to go into administration if landlords refuse rent cuts. Sources close to Intu , the owner of the Trafford Centre in Greater Manchester and the Metrocentre If the restructuring does not go ahead, Arcadia is expected to go into administration, putting 18,000 jobs at risk.

Intu Properties told Arcadia it will oppose its rescue plan on Wednesday, placing the retailer’s future in doubt, Sky News learns. Sir Philip Green ' s plan to save his high street empire from collapse edged closer to failure on Tuesday when its second-biggest landlord indicated it would oppose a last-gasp

Lakeside-owner Intu puts Green’s Arcadia on brink © Getty Topshop

Sir Philip Green's plan to save his high street empire from collapse edged closer to failure on Tuesday when its second-biggest landlord indicated it would oppose a last-gasp rescue deal.

Sky News has learnt that Intu Properties, which owns the Lakeside and Trafford Centre shopping centres, has informed Arcadia Group that a compromise deal aimed at winning over sceptical property-owners had not persuaded it to support a proposed Company Voluntary Arrangement (CVA).

The move inches Arcadia, which needs the support of 75% of creditors at a rescheduled vote on Wednesday, to the brink of administration, and casts renewed doubt over 18,000 high street jobs.

Sir Philip Green sets out a £135m overhaul to save Arcadia with stores refurbished and a website revamp

Sir Philip Green sets out a £135m overhaul to save Arcadia with stores refurbished and a website revamp The strategy, which is part of a last-ditch attempt to keep the business afloat, is explained in an email sent yesterday by Ian Grabiner, the chief executive of Arcadia.

Green has promised landlords a 20% stake in the business and a £40m compensation fund in an effort to secure their backing. He also pledged to make a £50m cash investment in updating stores and online sales infrastructure at Arcadia – a sum which underpins the group’ s £135m turnaround plan.

Green has promised landlords a 20% stake in the business and a £40m compensation fund in an effort to secure their backing. He also pledged to make a £50m It reports that Intu Properties, which owns Manchester’ s Trafford Centre and Lakeside in Essex, is to vote against Arcadia ’ s company voluntary

Intu's decision, which insiders said would not be reversed ahead of the vote, makes it "very difficult" for Arcadia to win the vote even if other major landlords support the revised deal.

Sir Philip's empire - which includes the Top Shop and Burton brands - announced on Friday that it would reduce the severity of proposed rent cuts, a move that would cost the tycoon's family close to £30m over a three-year period.

Lakeside-owner Intu puts Green’s Arcadia on brink © Getty

Intu, which owns about 35 Arcadia shop units across the UK, will have the biggest single say at Wednesday's creditor meeting, accounting for an average of about 15% of the vote across at least six separate CVA proposals.

A source close to the company said Intu had not changed its view since last week, when its opposition to the original plan forced Arcadia to adjourn the vote until this week.

Sir Philip Green is charged with four counts of assault in the US after a pilates instructor alleged the Arcadia mogul repeatedly touched her inappropriately

Sir Philip Green is charged with four counts of assault in the US after a pilates instructor alleged the Arcadia mogul repeatedly touched her inappropriately Sir Philip Green has been charged with four counts of misdemeanour assault in the US after a pilates instructor alleged he touched her inappropriately.

Sir Philip Green ' s plan to save his high street empire from collapse edged closer to failure on Tuesday when its second-biggest landlord indicated it would oppose a last-gasp rescue deal. Sky News has learnt that Intu Properties, which owns the Lakeside and Trafford Centre shopping centres, has.

Sir Philip Green ' s Arcadia retail empire could crash into administration today unless it can strike a deal with store But Arcadia still faced potentially fatal opposition last night, with shopping centres owner Intu Intu , which owns the Trafford Centre in Mancheser and Lakeside in Essex, is understood to

Intu is understood to believe that it would be unfair to substantially reduce rents on Arcadia units to the disadvantage of other retail tenants.

On average, the shopping centre-owner is said to face revised rent cuts of 40%, rather than the earlier 50%, but this was still too large for Intu executives to justify, according to an insider briefed on its views.

Intu is understood to believe that it would be better-placed to take its chances with an administration process for Arcadia, with Topshop accounting for 70% of its Arcadia units.

The company owns eight of the UK's top 20 shopping centres, and disclosed this week that footfall last month at its centres rose by 1.1% - outperforming the wider market.

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Lakeside-owner Intu puts Green’s Arcadia on brink

A source close to Arcadia insisted that it could still win Wednesday's vote, even with Intu opposing it, but conceded that it would need the support of every other major landlord.

Philip Green set for Arcadia showdown

Philip Green set for Arcadia showdown Retail tycoon facing crunch vote with regulators and landlords as he faces fresh allegations of sexual misconduct

The future of Sir Philip Green ' s retail empire remains in doubt after a crunch meeting with landlords was If Arcadia fails to gain the approval of 75 per cent of its creditors it is likely to be put into Shopping centre owner Intu told Arcadia on Wednesday that it will not back proposals to slash rents

The fate of Sir Philip Green ' s Top Shop and Burton retail empire will be put to the vote on Wednesday. Shopping centre owner Intu is planning to vote against Sir Philip Green ' s revised proposals to save his Arcadia retail empire. It is understood the owner of Lakeside shopping centre

Landsec, British Land and Hammerson are thought to be voting in favour, while M&G Investments, Aviva Investors and Aberdeen Standard Investments will also have a vital say in the outcome.

Sir Philip's empire plans to go ahead with the vote, according to the source, although if it fails, Arcadia is likely to fall into administration on Wednesday evening.

If it does so, more than 9500 pension scheme members are likely to require the support of the Pension Protection Fund, which agreed last week to support Sir Philip's plan after he pledged another £25m to its retirement scheme.

And if Arcadia does collapse, it would be the most stunning casualty in a sector brutalised by difficult trading conditions in recent years.

While big names such as Debenhams, House of Fraser, Maplin and Toys 'R' Us have all entered some form of insolvency or disappeared, the demise of a tycoon widely lauded as "the king of the high street" would be the most notable by far.

Lakeside-owner Intu puts Green’s Arcadia on brink © Getty

Arcadia's collapse into administration would herald a break-up of the group, with significant interest likely to be registered in buying Topshop but a lesser appetite for a takeover of brands like Evans and Wallis.

Irish Topshop closures confirmed in the wake of Arcadia rescue plan

Irish Topshop closures confirmed in the wake of Arcadia rescue plan The closure of several Topshop, Topman, Miss Selfridge, Evans and Wallis stores in Ireland has been confirmed following the approval of parent company Arcadia Group’s company voluntary arrangements (CVA) by its creditors. 

The fate of Sir Philip Green ' s Top Shop and Burton retail empire will be put to the vote on Wednesday. Shopping centre owner Intu is planning to vote against Sir Philip Green ' s revised proposals to save his Arcadia retail empire. It is understood the owner of Lakeside shopping centre

Next article Lakeside - owner Intu puts Green ’ s Arcadia on brink .

Deloitte is understood to have been placed on standby to act as Arcadia's administrator, according to creditors who have been briefed on the process.

Under Arcadia's proposals, nearly 50 stores will close with the loss of hundreds of jobs, while landlords would be handed 20% of the company.

A larger number of stores is ultimately likely to close if Arcadia is unable to avoid administration.

The collapse of his remaining retail interests would be the culmination of a dismal few years for Sir Philip.

In 2017, he agreed to pay up to £363m to compensate BHS pensioners following a furious row over the department store chain's collapse little more than a year after he sold it for £1 to the former bankrupt, Dominic Chappell.

Sir Philip has more recently been embroiled in a storm over his behaviour towards Arcadia employees and his use of non-disclosure agreements to prevent former workers discussing their severance packages.

Last month, he was charged in Arizona in relation to his behaviour towards a Pilates instructor, although he has denied any unlawful wrongdoing.

Arcadia and Intu both declined to comment.

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Green's creditor fight places controversial CVAs in peril.
The successful battle fought by Sir Philip Green to rearrange the debts of his Top Shop-to Dorothy Perkins fashion empire, Arcadia, has thrown a spotlight on the whole company voluntary arrangement (CVA) process. Arcadia narrowly won the support of its creditors - but the battle raises serious questions over whether other struggling retailers will be able to use CVAs in future. The CVA process has been deployed by a host of retailers, including Mothercare, House of Fraser, Carpetright and New Look, as well as restaurant chains including Byron and Prezzo.

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