On the go: Sir Philip Green’s Arcadia Group postponed a creditors’ meeting until June 12, after the floundering company failed to secure sufficient initial support from landlords.
The future of 18,000 jobs are at risk. Sir Philip is hoping landlords will accept rent cuts and shop closures to ensure the survival of the group.
Ian Grabiner, CEO of Arcadia, said: “It is in the interests of all stakeholders that we adjourn today’s meetings to continue our discussions with landlords. We believe that with this adjournment, there is a reasonable prospect of reaching an agreement that the majority of landlords will support.”
The chances of a deal had looked promising on Tuesday evening, after the Green family and Arcadia reached agreement with the Pensions Regulator over the funding of Arcadia’s defined benefit pension scheme backed also by the Pension Protection Fund.
A spokesperson for the PPF said: “As Arcadia confirmed earlier there is now a seven-day adjournment on their CVA proposal. We voted in favour of the Arcadia Group Limited CVA as we believed the funding and security package agreed was a good outcome for members of the pension schemes and the PPF.”
We believe that with this adjournment, there is a reasonable prospect of reaching an agreement that the majority of landlords will support
Ian Grabiner, Arcadia
They added: “We recognise that this continues to be a worrying time for members of the Arcadia pension schemes and they can be reassured that the PPF is here to protect them whatever the outcome of the CVA vote.”
The Arcadia Pension Fund’s most recent 2018 fund update showed an aggregate solvency deficit of £727m with combined Technical Provisions deficits at an estimated £537m.
