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Sir Philip Green in final bid to save retail empire | Sir Philip Green in final bid to save retail empire |
(32 minutes later) | |
Sir Philip Green has made a last-ditch attempt to save his retail empire from collapse by seeking a less severe rent reduction from landlords of his stores. | Sir Philip Green has made a last-ditch attempt to save his retail empire from collapse by seeking a less severe rent reduction from landlords of his stores. |
Earlier this week, a vote on Sir Philip's rescue deal for Arcadia, which includes Topshop, was postponed after some landlords refused to back it. | Earlier this week, a vote on Sir Philip's rescue deal for Arcadia, which includes Topshop, was postponed after some landlords refused to back it. |
Sir Philip is now asking landlords to agree to rent cuts of between 25% and 50%, instead of 30% to 70%. | Sir Philip is now asking landlords to agree to rent cuts of between 25% and 50%, instead of 30% to 70%. |
This shortfall in rent will be plugged by £9.5m provided by the Green family. | This shortfall in rent will be plugged by £9.5m provided by the Green family. |
However, that commitment could rise to up to £29m during the three-year period of the deal. | |
Landlords of the troubled group's stores, which also include Miss Selfridge and Dorothy Perkins, were due to vote on the rescue deal, known as a Company Voluntary Arrangement (CVA), on Wednesday, but it was postponed "to conduct further dialogue with a few landlords". | Landlords of the troubled group's stores, which also include Miss Selfridge and Dorothy Perkins, were due to vote on the rescue deal, known as a Company Voluntary Arrangement (CVA), on Wednesday, but it was postponed "to conduct further dialogue with a few landlords". |
As well as rent cuts, the deal would have meant the closure of 48 stores and the loss of around 1,000 jobs. | As well as rent cuts, the deal would have meant the closure of 48 stores and the loss of around 1,000 jobs. |
Sir Philip is hoping his improved offer will persuade landlords to back his deal. | Sir Philip is hoping his improved offer will persuade landlords to back his deal. |
Arcadia chief executive Ian Grabiner said: "Having already secured the support of our pensions trustees, trade creditors and a significant number of landlords, we hope these final revised terms will ensure the majority of landlords support the CVA at next week's vote. | Arcadia chief executive Ian Grabiner said: "Having already secured the support of our pensions trustees, trade creditors and a significant number of landlords, we hope these final revised terms will ensure the majority of landlords support the CVA at next week's vote. |
"Their support is vital for the long term sustainability of the group, our 18,000 employees and our extensive network of loyal suppliers." | "Their support is vital for the long term sustainability of the group, our 18,000 employees and our extensive network of loyal suppliers." |
It's understood improved terms on break clauses for leases are also being offered. | It's understood improved terms on break clauses for leases are also being offered. |
Landlords will be voting again on 12 June. | Landlords will be voting again on 12 June. |
If the deal doesn't pass then Arcadia says the group is very likely to enter administration. | If the deal doesn't pass then Arcadia says the group is very likely to enter administration. |
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