Topshop and Burton could fall into administration tomorrow
PUBLISHED: 15:41 11 June 2019 | UPDATED: 15:41 11 June 2019
The future of Sir Philip Green's Arcadia retail empire is hanging in the balance as a key landlord continues to oppose a last-gasp rescue plan.
It is understood shopping centre operator Intu is planning to vote against Arcadia's compromise deal to support a Company Voluntary Arrangement (CVA).
Under a CVA a business reaches an agreement with creditors to tackle all or a portion of its debts.
And the deal requested would see landlords agree to a new rent cut of up to 50%.
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Arcadia runs a number of the high street's biggest brands including Topshop, Burton, and Dorothy Perkins.
It runs more than 500 stores, a number of which hold a key position in high streets across Suffolk.
If it does not secure support from at least 75% of creditors at a meeting tomorrow (Wednesday, June 12) it will likely enter administration and place more than 18,000 high street jobs at risk.
Intu owns around 35 of Arcadia's shop units across the UK - so has the biggest single vote, 15%, at the creditors' meeting.
Sir Philip's latest offer to landlords saw him asking them to agree rent cuts of between 25% and 50%.
However, sources say Intu believe the cuts are too large and the firm would be better off simply facing the consequences of Arcadia entering administration.