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| Sir Philip Green's Arcadia facing crucial week | |
| (about 1 hour later) | |
| Sir Philip Green's Arcadia retail group is facing a crucial week, with creditors set to vote on his proposed restructuring plans on Wednesday. | Sir Philip Green's Arcadia retail group is facing a crucial week, with creditors set to vote on his proposed restructuring plans on Wednesday. |
| If landlords and the Pensions Regulator do not back his proposals to shut stores and cut rents, the High Street giant could go into administration. | If landlords and the Pensions Regulator do not back his proposals to shut stores and cut rents, the High Street giant could go into administration. |
| Nearly 50 UK shops are due to close and MPs want him to use his own wealth to fund the firm's pension scheme. | Nearly 50 UK shops are due to close and MPs want him to use his own wealth to fund the firm's pension scheme. |
| Arcadia chains include Topshop, Burton, Wallis, and Dorothy Perkins. | Arcadia chains include Topshop, Burton, Wallis, and Dorothy Perkins. |
| The measures are seen as a final effort by the company, which is losing out to online rivals, to stave off administration or breakup. | The measures are seen as a final effort by the company, which is losing out to online rivals, to stave off administration or breakup. |
| Arcadia currently has more than 560 shops across the UK and Ireland, and employs 22,000 staff. | Arcadia currently has more than 560 shops across the UK and Ireland, and employs 22,000 staff. |
| Pensions issues | Pensions issues |
| The firm initially announced 23 stores would close as part of the rescue deal, known as a company voluntary arrangement (CVA). Then it emerged that a further 25 stores would shut, under separate insolvency proceedings. | The firm initially announced 23 stores would close as part of the rescue deal, known as a company voluntary arrangement (CVA). Then it emerged that a further 25 stores would shut, under separate insolvency proceedings. |
| That second round of closures will mainly affect plus size clothing chain Evans, as well as six Miss Selfridge stores. | That second round of closures will mainly affect plus size clothing chain Evans, as well as six Miss Selfridge stores. |
| The latest closures add to the 200 UK stores shut over the past three years. | The latest closures add to the 200 UK stores shut over the past three years. |
| Under the CVA, the retail giant is also seeking to halve contributions to its pension funds - which have a deficit of £750m - to £25m each year. | Under the CVA, the retail giant is also seeking to halve contributions to its pension funds - which have a deficit of £750m - to £25m each year. |
| But Sir Philip's wife, Lady Tina Green, who is Arcadia's main shareholder, has offered to inject an extra £100m into the schemes over the next three years. | But Sir Philip's wife, Lady Tina Green, who is Arcadia's main shareholder, has offered to inject an extra £100m into the schemes over the next three years. |
| However, the Pensions Regulator - which has the power to block the CVA - has said it has doubts the plans will "adequately protect" the pensions of employees. | However, the Pensions Regulator - which has the power to block the CVA - has said it has doubts the plans will "adequately protect" the pensions of employees. |
| And MP Frank Field, chair of the Commons' Work and Pensions Committee, has urged Sir Philip to use his own money to support the pension fund of his troubled group. | And MP Frank Field, chair of the Commons' Work and Pensions Committee, has urged Sir Philip to use his own money to support the pension fund of his troubled group. |
| The retail tycoon is also seeking rent reductions on nearly 200 shops, and to sweeten the pill he has offered landlords a 20% stake of any proceeds if the group is eventually sold. | The retail tycoon is also seeking rent reductions on nearly 200 shops, and to sweeten the pill he has offered landlords a 20% stake of any proceeds if the group is eventually sold. |
| But a number are pushing for changes to the proposals. | But a number are pushing for changes to the proposals. |
| For the agreement to go ahead, Arcadia must win approval from three quarters of its creditors, which include landlords, creditors and the company's pension trustees. | For the agreement to go ahead, Arcadia must win approval from three quarters of its creditors, which include landlords, creditors and the company's pension trustees. |
| 'Years of underinvestment' | 'Years of underinvestment' |
| Retail analyst Richard Hyman told the BBC it was "hard to tell" if the CVA would pass. | Retail analyst Richard Hyman told the BBC it was "hard to tell" if the CVA would pass. |
| "There are big questions over whether Green can make Arcadia a viable business after years of underinvestment. | "There are big questions over whether Green can make Arcadia a viable business after years of underinvestment. |
| "He's also had run-ins with his landlords and the Pension Regulator in the past. Now he's asking them to believe in him, and it's a big ask." | "He's also had run-ins with his landlords and the Pension Regulator in the past. Now he's asking them to believe in him, and it's a big ask." |
| But Richard Lim, head of Retail Economics, said landlords had little choice but to back the deal. | But Richard Lim, head of Retail Economics, said landlords had little choice but to back the deal. |
| "Arcadia has a huge presence on the High Street, and in many places landlords will think, 'who is going to fill this space if they aren't here?'" | "Arcadia has a huge presence on the High Street, and in many places landlords will think, 'who is going to fill this space if they aren't here?'" |
| The retail group also plans to shut all of its 11 Topshop and Topman stores in the US. | The retail group also plans to shut all of its 11 Topshop and Topman stores in the US. |
| Separately, last week Sir Philip was charged in the US with four counts of misdemeanour assault. | Separately, last week Sir Philip was charged in the US with four counts of misdemeanour assault. |
| The charges come after a fitness instructor in Arizona alleged that he repeatedly touched her inappropriately. | The charges come after a fitness instructor in Arizona alleged that he repeatedly touched her inappropriately. |
| Sir Phillip denies the claims. | Sir Phillip denies the claims. |