Sir Philip Green’s Arcadia empire has been thrown into doubt today, as it awaits a vote on a proposed restructuring deal.
The retail group was dealt a blow after sources revealed that Intu, the owner of various shopping centres, would oppose the plan.
Intu is expected to vote against a proposed company voluntary arrangement (CVA) at a meeting with creditors later today.
The CVA would see landlords such as Intu (LON:INTU) agreeing to lower rents and store closures.
However, it has been reported that other landlords are likely to support the arrangement.
If creditors do not agree to the restructuring, Green’s Arcadia group could enter administration as early as this evening.
So far, Sir Green has agreed to pay another £25 million into the group’s pension fund in a bid to ensure this would secure the backing of regulators. The figure is half the £50 million initially proposed.
The Pensions Regulator commented on the additional funding: “We recognise that the best support for any pension scheme is a trading employer and we feel the CVA [company voluntary arrangement] proposals now provide the right balance between security for the pension schemes and the chance of sustainability for the company.”
Arcadia owns the Topshop and Topman brands, as well as Miss Selfridge, Wallis, Evans, Burtons and Dorothy Perkins.
As a result, chairman Philip Green has often been dubbed ‘the King of the High Street’.
Nevertheless, the businessman’s crown has lost its shine in recent years, amid a series of controversies such as the handling of the demise of the BHS chain
