Arcadia Group’s CVA proposal includes the closure of an initial 23 stores in the UK and Ireland along with the shuttering of the company’s Topshop and Topman stores in the USA. It is also seeking rent reductions on 194 of its UK stores. The meeting of creditors is scheduled for June 5th.
“Against a backdrop of challenging retail headwinds, changing consumer habits and ever-increasing online competition, we have seriously considered all possible strategic options to return the group to a stable financial platform,” said Arcadia CEO Ian Grabiner. Adding, “This has been a tough but necessary decision for the business.”
The business will face considerable interrogation by the Pensions Regulator as the CVA proposals also include a bid to halve Arcadia’s annual contributions to its pensions schemes.
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