LONDON (Reuters) – Philip Green’s Arcadia on Friday improved the terms of his restructuring plan for the struggling fashion retailer, which he needs creditors to approve to prevent the group, which employs 18,000, collapsing into administration.
On Wednesday a key meeting of creditors held to vote on Green’s plan was adjourned until June 12 after several landlords declined to back it.
In an attempt to win over the landlords Arcadia has now proposed a rental reduction of between 25% and 50% for all affected landlords across seven Company Voluntary Arrangements (CVAs) versus cuts of 30% to 70% previously.
It said the cost of the change – 9.5 million pounds in the first year – will be entirely funded by Tina Green, Philip Green’s wife and the ultimate owner of Arcadia.
(Reporting by James Davey; Editing by Alistair Smout)