Sir Philip Green, Topshop tycoon is planning to close 23 stores, which will put 520
jobs at stake. According to reports, Burton Perkins and
Topshop stores will be closed under the proposal and rents will be stopped for
another 194 stores from the Arcadia group. Having said that, the pension
regulators doubt if the deal will sufficiently protect the pensions of the
They need approvals from the Company Voluntary Arrangement (CVA) to support the decision. There are seven in total and all must be approved by creditors. CVAs are a type of insolvency for troubled businesses that allows rents to be cut.
The proposal mentions that Arcadia Group plans to put an additional £100m into the scheme over the years to bridge a shortfall in pension contributions, but the regulator does not think the plans are sufficient. Chief executive of Arcadia Group, Ian Grabiner, called the steps “tough but necessary” to mend the business.
The company also plans to
close all its 11 Topshop and Topman stores in the US. If a deal is not
approved, about 19,000 employees of Green’s Arcadia Group could face