US landlords withdraw challenge to Arcadia closures
The Topshop owner can now complete its restructuring plans.
Topshop owner Arcadia will press ahead with store closures and rent cuts after two US landlords withdrew their opposition to the plans.
Sir Philip Green’s retail group said the landlords had agreed to drop their challenges following “significant and constructive dialogue”.
Following the withdrawal, Arcadia is free to move forward with its Company Voluntary Arrangements (CVAs) which were voted through by creditors in June.
As part of its restructuring plans, the company decided to push its US subsidiary into administration and close 11 Topshop and Topman stores in the market.
Ian Grabiner, chief executive of Arcadia, said that all seven of the CVAs could now be implemented.
“On behalf of the board, I would like to thank all of our staff, customers and creditors for their loyal support during this tough period for retail businesses,” he said.
“We can now look forward to implementing our strategy and delivering our growth plan for the Group.”
The shake-up of Arcadia’s shopping empire also includes 23 store closures in the UK, putting around 1,000 jobs at risk.
Another 25 operating under the Miss Selfridge and Evans stores are also in the process of being shuttered, while landlords of some remaining shops will be paid a reduced rent bill.
The proposals have been the subject of controversy since they were made public, with the initial meeting to pass the CVAs being adjourned due to a lack of support.
Sir Philip and his wife Lady Tina Green later added amendments to the proposals to win over landlords and the plans were eventually approved.