Money: Topshop owner averts collapse as rescue deal scrapes through - PressFrom - United Kingdom
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MoneyTopshop owner averts collapse as rescue deal scrapes through

09:25  13 june  2019
09:25  13 june  2019 Source:   news.sky.com

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.

Sir Philip Green's high street retail empire has averted the prospect of collapse after securing enough support for a package of rescue measures in a knife-edge vote. Arcadia Group - whose brands include Topshop , Dorothy Perkins and Burton - needed to win 75% of votes among creditors to win the day.

Sir Philip Green has told Sky News "a win is still a win" after his high street retail empire narrowly averted the prospect of collapse . Arcadia Group - whose brands include Topshop , Dorothy Perkins and Burton - needed to get 75% support in a series of rescue deal votes among creditors. Sir.

Topshop owner averts collapse as rescue deal scrapes through © Getty Sir Philip Green is currently believed to be out of the country Sir Philip Green's high street retail empire has averted the prospect of collapse after securing enough support for a package of rescue measures in a knife-edge vote.

Arcadia Group - whose brands include Topshop, Dorothy Perkins and Burton - needed to win 75% of votes among creditors to win the day.

Under the so-called company voluntary arrangements (CVAs), the tycoon plans to close 50 of his 566 trading outlets employing 18,000 staff across the UK and Ireland.

The vote in the City was delayed by a week as landlords held out for improved terms on rent cuts they were also being asked to approve at 194 of the remaining sites.

Green pledges £25m more to save Arcadia empire

Green pledges £25m more to save Arcadia empire Sir Philip Green has pledged another £25m to Arcadia's pension scheme in an eleventh-hour bid to secure regulators' backing for a restructuring of his Top Shop empire. Sky News has learnt that the retail tycoon and his advisers have agreed the outline of a deal with pension stakeholders that will involve the total sum being pledged to Arcadia's‎ retirement fund during the next three years to increase from £360m to £385m. The new £25m sum, which will be in the form of security over Arcadia property assets, is expected to be confirmed in a statement ahead of a crunch vote of the company's creditors on Wednesday.

Sir Philip Green has told Sky News "a win is still a win" after his high street retail empire narrowly averted the prospect of collapse . Arcadia Group - whose brands include Topshop , Dorothy Perkins and Burton - needed to get 75% support in a series of rescue deal votes among creditors. Sir.

Sir Philip Green has told Sky News "a win is still a win" after his high street retail empire narrowly averted the prospect of collapse . Arcadia Group - whose brands include Topshop , Dorothy Perkins and Burton - needed to get 75% support in a series of rescue deal votes among creditors. The.

Sky News reported on Tuesday how the result - on what was described as the final offer - was in the balance as Arcadia's second-biggest landlord, Trafford Centre owner Intu Properties, indicated its opposition remained.

Other stakeholders in the rescue process included The Pensions Regulator (TPR) and the Pension Protection Fund (PPF) which supported the plans after the Green family agreed to cover improved payments to its retirement scheme.

Topshop owner averts collapse as rescue deal scrapes through © Getty TopShop at Oxford Circus in central London

A rejection of the rescue plans would have likely meant its 9,500 pension scheme members requiring the PPF's support.

Arcadia - like rival high street operators - have come under pressure from a collapse in consumer confidence at a time of increased costs from things such as business rates and minimum wage rules.

Lakeside-owner Intu puts Green’s Arcadia on brink

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

Sir Philip Green has told Sky News "a win is still a win" after his high street retail empire narrowly averted the prospect of collapse . Arcadia Group - whose brands include Topshop , Dorothy Perkins and Burton - needed to get 75% support in a series of rescue deal votes among creditors. The.

Topshop owner averts collapse as rescue deal scrapes through .

Commenting on the result, the company's chief executive Ian Grabiner said: "We are extremely grateful to our creditors for supporting these proposals and to Lady Green for her continued support.

"After many months of engaging with all our key stakeholders, taking on board their feedback, and sharing our turnaround plans, the future of Arcadia, our thousands of colleagues, and our extensive supplier base is now on a much firmer footing.

"From today, with the right structure in place to reduce our cost base and create a stable financial platform for the group, we can execute our business turnaround plan to drive growth through our digital and wholesale channels, while ensuring our store portfolio remains at the heart of our customer offer."

Topshop owner averts collapse as rescue deal scrapes through © Getty Retail experts suggest Topshop and Topman will benefit most from promised Arcadia investment

Several sources told Sky News the atmosphere at the CVA vote was fairly dark - with one supplier hitting out at landlord opposition following the conclusion of the voting process as the results were awaited.

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. 

Topshop owner averts collapse as rescue deal scrapes through . 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.

:: Topshop owner averts collapse as rescue deal scrapes through . The other advantage of the process is that it saves struggling retailers or restauranteurs the hassle of negotiating terms with each landlord individually. That is in keeping with the way in which commercial property - both office and

Oliver Matei-Buhus, operations director at Paragon Clothing, said: "The landlords are ruthless and self serving and it's a shame there's no spirit of community bearing in mind Arcadia has been an excellent tenant for many years.

"It's a short term view and I don't think that helps."

Commenting on the result Chloe Collins, senior retail analyst at analytics firm GlobalData, said the hard work starts now.

She wrote: "Although Arcadia's CVA has been approved, it is unsurprising that it faced (a) backlash from some landlords who have doubts about the retailer's future.

"Its leading brands - Topshop and Topman - still have a strong following among millennials, however many of the other, such as Miss Selfridge and Dorothy Perkins, are now irrelevant in a highly saturated market and chances of revival are slim, leading landlords to question whether other retailers could offer their spaces more longevity.

"The decision to add Topshop and Topman to ASOS' branded offer as part of Arcadia's turnaround plan is wise to increase the brand's reach, especially internationally, however it is crucial that the £60m invested into advancing Arcadia's digital platforms includes competitive and convenient delivery methods to rival ASOS and maintain traction on the brand's individual sites.

"The £75m invested from Green into its physical stores however is going to be too thinly spread as the agreed closures still leave Arcadia with an estate of around 500 stores which have been neglected for far too long and are now unable to match competition which moves in favour of experience-led shopping."

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Monsoon Accessorize becomes latest struggling high street chain to ask landlords to cut rents after it needed a £34million rescue funding.
The company confirmed that accountancy giant Deloitte has been appointed to run a Company Voluntary Arrangement (CVA), similar to Arcadia.

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