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You can find the current article at its original source at https://www.theguardian.com/business/live/2019/jun/12/philip-green-arcadia-creditors-rescue-vote-jobs-business-live
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| Philip Green's Arcadia group on a knife-edge as creditors vote on rescue plan - business live | Philip Green's Arcadia group on a knife-edge as creditors vote on rescue plan - business live |
| (32 minutes later) | |
| Voting is now underway, to decide the fate of one of Britain’s biggest retail groups. | |
| Arcadia landlords are already leaving the meeting near St Paul’s, so we may hear from them soon..... | |
| Creditors heading out from Arcadia meeting as votes being counted.. result expected with next couple of hours.. | |
| Arcadia presentation is over and votes are being counted...still on a knife edge. #arcadiacva | |
| The Arcadia meeting is having a short presentation about updates to the CVA and then there will be a vote - the results of which are expected by about 15.00 - possibly later. | The Arcadia meeting is having a short presentation about updates to the CVA and then there will be a vote - the results of which are expected by about 15.00 - possibly later. |
| One clothing and fabric supplier attending the meeting said he was hoping the CVA would pass. “It wouldn’t be good for our business (if it doesn’t),” he said. | One clothing and fabric supplier attending the meeting said he was hoping the CVA would pass. “It wouldn’t be good for our business (if it doesn’t),” he said. |
| Gerry Matthews of Eternal Design Studio, a clothing supplier, said he was “very much in favour of [the CVA] going through. | Gerry Matthews of Eternal Design Studio, a clothing supplier, said he was “very much in favour of [the CVA] going through. |
| But he admitted it was not clear how the vote would play out after Philip Green’s last minute improvement on his offer to landlords. | But he admitted it was not clear how the vote would play out after Philip Green’s last minute improvement on his offer to landlords. |
| “He probably plays poker quite well,” Matthews said. | “He probably plays poker quite well,” Matthews said. |
| Even Arcadia’s own creditors don’t know how today’s vote will turn out, reports Property Week’s David Parsley. | Even Arcadia’s own creditors don’t know how today’s vote will turn out, reports Property Week’s David Parsley. |
| ARCADIA UPDATE: If evidence were needed that no one seems to know which way today's vote will go I've just heard from one major #arcadia landlord that they have drafted two statements - one for if the rescue deal passes and one for if it doesn't. I want to read both. #arcadialive | ARCADIA UPDATE: If evidence were needed that no one seems to know which way today's vote will go I've just heard from one major #arcadia landlord that they have drafted two statements - one for if the rescue deal passes and one for if it doesn't. I want to read both. #arcadialive |
| A quick reminder of what’s happening: | A quick reminder of what’s happening: |
| Arcadia is presenting its creditors with seven Company Voluntary Arrangements (CVA). They cover all its high street brands brands - Topshop, Topman, Burton Menswear, Dorothy Perkins, Evans, Miss Selfridge and Wallis. | Arcadia is presenting its creditors with seven Company Voluntary Arrangements (CVA). They cover all its high street brands brands - Topshop, Topman, Burton Menswear, Dorothy Perkins, Evans, Miss Selfridge and Wallis. |
| Arcadia says that every CVA must pass, otherwise the whole company could be placed into administration. That would threaten 18,000 jobs - although there is speculation that some brands could be saved, with others closing. | Arcadia says that every CVA must pass, otherwise the whole company could be placed into administration. That would threaten 18,000 jobs - although there is speculation that some brands could be saved, with others closing. |
| Hearing from sources close to Arcadia that if one of the CVAs falls today, that might not spell the end for the whole group. | Hearing from sources close to Arcadia that if one of the CVAs falls today, that might not spell the end for the whole group. |
| If that were the case, not sure there would be time for a final decision - as board would need to discuss contingencies further. Hope remains, obviously, that Arcadia can get all passed today | If that were the case, not sure there would be time for a final decision - as board would need to discuss contingencies further. Hope remains, obviously, that Arcadia can get all passed today |
| The proposal would see around 50 of Arcadia’s 570 stores close, with rent cuts of 25%-50% on the rest. | The proposal would see around 50 of Arcadia’s 570 stores close, with rent cuts of 25%-50% on the rest. |
| After the plan was rejected last week, Sir Philip Green sweetened the deal with extra money for landlords, and lower rent reductions. | After the plan was rejected last week, Sir Philip Green sweetened the deal with extra money for landlords, and lower rent reductions. |
| That hasn’t persuaded one major landlord, Intu, who is expected to vote against the proposal | That hasn’t persuaded one major landlord, Intu, who is expected to vote against the proposal |
| Others are more positive - Crown Estates has said it will back the CVA | Others are more positive - Crown Estates has said it will back the CVA |
| Apparently only about 30 or 40 people in the room at today’s #arcadiacva meeting.. a lot less than last week | Apparently only about 30 or 40 people in the room at today’s #arcadiacva meeting.. a lot less than last week |
| Breaking! The Crown Estate has confirmed that it is backing Arcadia’s restructuring plan today. | Breaking! The Crown Estate has confirmed that it is backing Arcadia’s restructuring plan today. |
| That increases the chances that the CVA deal is approved today, sparing Arcadia from administration. | That increases the chances that the CVA deal is approved today, sparing Arcadia from administration. |
| A spokesperson for the Estate, which manages the Queen’s property assets, says: | A spokesperson for the Estate, which manages the Queen’s property assets, says: |
| “While we have voted in favour, we have done so to secure our ability to take control where we feel that a better offer can be delivered for our destinations. | “While we have voted in favour, we have done so to secure our ability to take control where we feel that a better offer can be delivered for our destinations. |
| This may include re-letting our spaces to new retailers who are more aligned with our ongoing commitment to creating great places for local communities.” | This may include re-letting our spaces to new retailers who are more aligned with our ongoing commitment to creating great places for local communities.” |
| The meeting on whether to approve, or reject, Arcadia’s CVA restructuring deal is getting underway now. | The meeting on whether to approve, or reject, Arcadia’s CVA restructuring deal is getting underway now. |
| Here’s the latest chatter from outside the meeting: | Here’s the latest chatter from outside the meeting: |
| Here we go again. Second #Arcadia CVA meeting about to get underway. Deal or no deal? Feels too close to call. | Here we go again. Second #Arcadia CVA meeting about to get underway. Deal or no deal? Feels too close to call. |
| ARCADIA UPDATE: As creditors gather near St Paul's one landlord says the "mood music has changed a little" adding he thinks it's changed in favour of #arcadia. Meeting set to begin in six minutes. | ARCADIA UPDATE: As creditors gather near St Paul's one landlord says the "mood music has changed a little" adding he thinks it's changed in favour of #arcadia. Meeting set to begin in six minutes. |
| Arcadia supplier Gerry Matthews says reckons SPG plays poker & very much in favour of CVA going through or it would effect biz “quite a bit | Arcadia supplier Gerry Matthews says reckons SPG plays poker & very much in favour of CVA going through or it would effect biz “quite a bit |
| If today’s CVA deal fails, Arcadia could plunge into administration ending a history dating back over 100 years. | If today’s CVA deal fails, Arcadia could plunge into administration ending a history dating back over 100 years. |
| The story all starts in Yorkshire at the start of the last century, where Montague Burton fled to escape the anti-Jewish pogroms in the Russian province of Kovno. There, he began a tailoring business which grew, thrived, and floated on the stock market in 1929. | The story all starts in Yorkshire at the start of the last century, where Montague Burton fled to escape the anti-Jewish pogroms in the Russian province of Kovno. There, he began a tailoring business which grew, thrived, and floated on the stock market in 1929. |
| Burton’s son then launched Topshop in the 1960s, before Philip Green showed up the scene some decades later. | Burton’s son then launched Topshop in the 1960s, before Philip Green showed up the scene some decades later. |
| Here’s the full history: | Here’s the full history: |
| Arcadia: from its roots with Burton in 1903 to near collapse | Arcadia: from its roots with Burton in 1903 to near collapse |
| A small crowd of reporters has gathered outside Etc Venues on Aldersgate, near St Paul’s in central London. | A small crowd of reporters has gathered outside Etc Venues on Aldersgate, near St Paul’s in central London. |
| Inside, Arcadia’s creditors will soon start voting on whether to accept the CVA agreement, having rejected it a week ago. | Inside, Arcadia’s creditors will soon start voting on whether to accept the CVA agreement, having rejected it a week ago. |
| Tv cameras here again for Arcadia CVA meeting in rather unglamorous spot on a roundabout.. appropriate as we’ve been down this route before? pic.twitter.com/96QWLHrHTo | Tv cameras here again for Arcadia CVA meeting in rather unglamorous spot on a roundabout.. appropriate as we’ve been down this route before? pic.twitter.com/96QWLHrHTo |
| The Queen’s property empire, the Crown Estate, has decided to support Arcadia’s restructuring, my colleague Sarah Butler hears. | The Queen’s property empire, the Crown Estate, has decided to support Arcadia’s restructuring, my colleague Sarah Butler hears. |
| That’s a boost for Philip Green. Last weekend, the Estate was locked in talks with Arcadia over today’s CVA votes. | That’s a boost for Philip Green. Last weekend, the Estate was locked in talks with Arcadia over today’s CVA votes. |
| I understand the Crown Estate has voted to back Arcadia’s cva but will be ‘actively managing’ its portfolio afterwards.. #arcadiacva | I understand the Crown Estate has voted to back Arcadia’s cva but will be ‘actively managing’ its portfolio afterwards.. #arcadiacva |
| David Parsley of Property Week agrees that Land Securities holds the key to Arcadia’s rescue deal. | David Parsley of Property Week agrees that Land Securities holds the key to Arcadia’s rescue deal. |
| ARCADIA UPDATE: Here we go again. Arcadia creditors' will meet at midday today to decide the fate of 18,000 workers and some of the high street's most famous brands. Like last week, Rob Noel, CEO of Landsec, has what appears to be the casting vote. It all feels oddly familiar. pic.twitter.com/FdLjmhUeZY | ARCADIA UPDATE: Here we go again. Arcadia creditors' will meet at midday today to decide the fate of 18,000 workers and some of the high street's most famous brands. Like last week, Rob Noel, CEO of Landsec, has what appears to be the casting vote. It all feels oddly familiar. pic.twitter.com/FdLjmhUeZY |
| Understand Arcadia feeling "more positive than they did last week" about CVA passing, as you'd expect after additional talks/concessions. But this will go right to the wire... | Understand Arcadia feeling "more positive than they did last week" about CVA passing, as you'd expect after additional talks/concessions. But this will go right to the wire... |
| Retail Week’s Luke Tugby has heard that the vote, due sometime afternoon, could be extremely close.... | Retail Week’s Luke Tugby has heard that the vote, due sometime afternoon, could be extremely close.... |
| Calls still being made this morning to creditors with "very, very small" votes to ensure their support. Arcadia acutely aware that every vote counts at this stage | Calls still being made this morning to creditors with "very, very small" votes to ensure their support. Arcadia acutely aware that every vote counts at this stage |
| Sources suggesting that the CVA will squeeze through, but vote share in favour could be as little as 75.5%. It's that tight | Sources suggesting that the CVA will squeeze through, but vote share in favour could be as little as 75.5%. It's that tight |
| Correction: Land Securities owns 12 Arcadia stores, not 24 as I mis-wrote earlier. | Correction: Land Securities owns 12 Arcadia stores, not 24 as I mis-wrote earlier. |
| Even so, their vote at today’s CVA will be crucial to the group’s future, and the jobs of thousands of employees. | Even so, their vote at today’s CVA will be crucial to the group’s future, and the jobs of thousands of employees. |
| Here’s the Press Association’s latest Arcadia story, for those looking to get up to speed before today’s CVA vote: | Here’s the Press Association’s latest Arcadia story, for those looking to get up to speed before today’s CVA vote: |
| Sir Philip Green’s retail empire faces a make-or-break vote on its future on Wednesday as it seeks approval for its restructuring plans, deciding the fate of 18,000 employees. | Sir Philip Green’s retail empire faces a make-or-break vote on its future on Wednesday as it seeks approval for its restructuring plans, deciding the fate of 18,000 employees. |
| Arcadia, the company behind Topshop, Wallis, Burton and a raft of other brands, will reconvene a meeting to vote on seven separate company voluntary arrangement (CVA) proposals. | Arcadia, the company behind Topshop, Wallis, Burton and a raft of other brands, will reconvene a meeting to vote on seven separate company voluntary arrangement (CVA) proposals. |
| The votes are for creditors - primarily landlords of the stores - who must either agree to cut their rents by approving the deal, or risk the collapse of Arcadia, leaving them with empty sites and no rent. | The votes are for creditors - primarily landlords of the stores - who must either agree to cut their rents by approving the deal, or risk the collapse of Arcadia, leaving them with empty sites and no rent. |
| Voting was supposed to take place last Wednesday, but was postponed when it became clear that some of the CVA proposals were heading for failure without more concessions from Sir Philip and Arcadia. | Voting was supposed to take place last Wednesday, but was postponed when it became clear that some of the CVA proposals were heading for failure without more concessions from Sir Philip and Arcadia. |
| It is understood that only those proposals which did not receive enough support at a previous meeting last week will be voted on again. | It is understood that only those proposals which did not receive enough support at a previous meeting last week will be voted on again. |
| If passed at a meeting in central London at 12pm on Wednesday, at least 23 stores will close. | If passed at a meeting in central London at 12pm on Wednesday, at least 23 stores will close. |
| A further 25 Miss Selfridge and Evans outlets have also been earmarked for closure as part of a restructuring process that is separate from the CVAs. | A further 25 Miss Selfridge and Evans outlets have also been earmarked for closure as part of a restructuring process that is separate from the CVAs. |
| Sir Philip has since offered a concession to landlords in a bid to sweeten the deal, proposing to impose less severe rent cuts than originally planned. | Sir Philip has since offered a concession to landlords in a bid to sweeten the deal, proposing to impose less severe rent cuts than originally planned. |
| Under the initial proposals, shop owners were facing rent reductions of between 30% and 70%. This will now be reduced to a range of 25% to 50%. | Under the initial proposals, shop owners were facing rent reductions of between 30% and 70%. This will now be reduced to a range of 25% to 50%. |
| It remains to be seen whether enough property owners will be convinced to support the process. | It remains to be seen whether enough property owners will be convinced to support the process. |
| Speaking to the Press Association, one landlord said the Arcadia CVA plans are different from previous ones from House of Fraser or Debenhams because the smaller units would be easier to fill with new occupiers. | Speaking to the Press Association, one landlord said the Arcadia CVA plans are different from previous ones from House of Fraser or Debenhams because the smaller units would be easier to fill with new occupiers. |
| “There was some sympathy for Debenhams,” he said. | “There was some sympathy for Debenhams,” he said. |
| “Whereas here you’ve got a bigger pool of potential tenants. You’ve got more options so it’s easier to vote against it. | “Whereas here you’ve got a bigger pool of potential tenants. You’ve got more options so it’s easier to vote against it. |
| “Not that many people are that emotional about it - there’s no tears for Philip Green.” | “Not that many people are that emotional about it - there’s no tears for Philip Green.” |
| Incidentally, the Green family yacht has been sighted -- at Sanrimo, Italy. | Incidentally, the Green family yacht has been sighted -- at Sanrimo, Italy. |
| As with last week's #Arcadia rescue meeting, Sir Philip Green is not expected to attend today. Last month the company said he "has not been present in the London Head Offices for nearly a year".His yacht is currently on the Italian coast. pic.twitter.com/ASPtMnoGHQ | As with last week's #Arcadia rescue meeting, Sir Philip Green is not expected to attend today. Last month the company said he "has not been present in the London Head Offices for nearly a year".His yacht is currently on the Italian coast. pic.twitter.com/ASPtMnoGHQ |