Arcadia to launch CVA 'within 48 hours'

Sir Philip Green’s fashion group is understood to have been encouraged by the response of property owners following crunch talks over the last few weeks.

Sources close to the business said “most” major landlords had been “really supportive” of Arcadia’s proposed plan, which would include the closure of 57 stores across its Topshop, Burton, Miss Selfridge, Dorothy Perkins, Evans and Wallis fascias.

However, Sky News has reported that a group of the company’s landlords, including British Land and Hammerson, have demanded a collective stake of at least 40% in the business.

Arcadia and its advisers Deloitte have also been struggling to garner support from the Pension Protection Fund. It is understood the two parties remain locked in discussions over the proposals.

Sources warned that, as a result, the launch of the CVA could be postponed until early next week, depending on the outcome of those meetings.

Arcadia, which has also been working with property consultancy GCW on the plans, is keen to push the CVA through by mid-June ahead of the next quarterly rent payment date. It would need to give its creditors at least two weeks to mull the proposals, ahead of a vote.

Three-quarters of Arcadia’s creditor base would need to agree to the plan for it to proceed.

As previously reported, Arcadia has already circulated documents to landlords ahead of the formal launch of the CVA plan, which detail the state of its finances.

The documents, first seen by The Sunday Times, show Green is planning on selling or closing all of Arcadia’s international businesses, which are mostly loss-making.

They also revealed the group’s total sales tumbled 10.5% to £1.7bn in the year to August 2018, while like for likes slumped 7.5%.

During the crucial Christmas trading period, like for likes at Topshop – the fascia considered to be the jewel in Arcadia’s crown – plummeted an eye-watering 20%.

Arcadia is yet to respond to Retail Week’s request for comment.