US landlords drop opposition to Arcadia restructure plan

Two US landlords have dropped challenges to restructuring plans at Philip Green's Arcadia group, the UK retailer said on Tuesday.

Vornado and Caruso had opposed company voluntary arrangements (CVAs) proposed by Green to cut rents in an effort to save his embattled empire, which includes the Top Shop and Dorthy Perkins stores chains.

“Arcadia Group is pleased to confirm that, following significant and constructive dialogue with the two US landlords which had challenged two of the group’s CVAs, they have now agreed to withdraw their challenges,” Arcadia said in a statement.

“Following their withdrawal, there are no challenges to the CVAs which can now be implemented in full.”

No details of the deal reached with the landlords were disclosed. UK landlords in June backed Green's plans, but only after Green’s wife, Tina, the official owner of Arcadia, agreed to pump £100m into the company pension scheme over three years, alongside a £285m contribution in property assets and cash payments from the company itself once the CVAs are completed.

The approval of the CVAs confirmed plans to close 23 stores, putting around 1,000 jobs at risk. A further 11 Topshop and Topman stores in the US were also earmarked for closure.

Part of the restructuring involved Arcadia putting its US subsidiary into administration which drew opposition from US creditors.