Yahoo Finance Philip Green pledges additional £10m to save Arcadia empire
Sir Philip Green has agreed to put up an additional £10m a year to reduce the impact of rent cuts proposed in the rescue package designed to save his ailing Arcadia empire.
The new proposals sent out on Friday ask certain landlords to reduce their rents by only 50%, when they had previously been asked to do so by 70%, according to the Guardian.
Landlords who had been asked for 30% rent cuts are now being asked for 25% cuts.
The lower asks are being funded by an additional £10m from the Green family, meaning that both Arcadia and the Greens will jointly pay rent to landlords.
Arcadia did not respond to a request for comment from Yahoo Finance UK.
The move comes as the Topshop owner was forced to delay the decision on its fate — and that of the 18,000 people it employs — until 12 June, to allow for further discussions with landlords.
READ MORE: Decision on fate of Sir Philip Green's Arcadia empire delayed
The company had been hoping that its creditors would approve seven company voluntary arrangements (CVAs) at a meeting on Wednesday, which would have allowed it to settle its debts by paying only a proportion of the amount it owes to them.
However, the meeting was adjourned, suggesting that not all of the agreements had achieved the requisite 75% support. CEO Ian Grabiner said in a statement that the company believed the delay could allow for “the reaching of an agreement that the majority of landlords will support.”
The company has warned that it is “highly likely” it will be forced to go into administration if the deals are not approved, putting the jobs of its 18,000 employees at risk.
Under the proposals outlined in the CVAs, 23 Arcadia stores in the UK and Ireland will close, which could result in the loss of more than 500 jobs. All 11 Topshops in the US will be shut.
Another 25 stores are likely to close if the group goes ahead with putting two of its property companies into administration.
