Sir Philip Green has recruited two restructuring specialists to the board of Arcadia, as he mulls a potential CVA for his struggling fashion empire.

Jamie Drummond-Smith and Peter Bloxham have both been appointed to the Arcadia board, as the fashion juggernaut – which owns such brands as Topshop, Dorothy Perkins and Burton – struggles with plummeting sales, an unwieldy and partly unprofitable property portfolio and accusations of sexual harassment and racism against its owner Green, which he denies.

Drummond-Smith is chair of finance group Cattles where he was previously chief restructuring officer, while Bloxham is former head of restructuring and insolvency at law firm Freshfields, the BBC has reported.

Drummond-Smith has been made chair of Topshop, Topman, Arcadia Group and its parent company Taveta, while Bloxham is joining the board.

The appointment of two restructuring experts comes at a time when Green has been considering a CVA in a bid to slash rents and exit dozens of stores across the UK.

However, any restructuring proposal would likely face an uphill battle to convince landlords, which would get a chance to vote on how to proceed. Arcadia would require the backing of 75% of its creditor base to press ahead.

At the beginning of April, Arcadia drafted in Deloitte and property consultancy GCW to help draw up proposals.

The group has also been exploring ways to slash its £50m-a-year pensions bill and yesterday it was reported that US investment firm Leonard Green had sold its 25% stake in Topshop and Topman back to Arcadia.

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