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