As the countdown nears the creditor vote on Arcadia’s company voluntary arrangements at midday today, landlords including Lendlease and Legal & General have been preparing for the possibility of closures within their estates.
The news comes after Arcadia secured key backing for the CVAs after agreeing a deal with The Pensions Regulator to inject a further £25m cash injection into the group’s pension fund.
The Pension Protection Fund, one of Arcadia’s largest creditors, has since said it will vote to support the CVAs.
Ian Grabiner, chief executive of Arcadia Group, said: “We hope the landlords and other creditors will follow suit and we can get the company back on a strong footing in all the markets where we trade.”
Of its 566 stores across the UK and Ireland, 23 have been identified for closure under seven CVAs.
If the plans are approved, a further 194 locations will be subjected to rent cuts of up to 70% as well as revised lease terms.
In addition to these, a further 25 stores are expected to close under separate insolvency processes, mainly affecting Evans and Miss Selfridge stores.
Documents seen by EG state the two propcos relating to the brands will be put into administration “in the short term”, with separate opcos continuing to operate through wholesale and concession models.
The group is also closing 11 stores in the US.
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