Analysts expect fashion retail giant Arcadia to announce its CVA as early as this week with the sale or closure of its business outside of the UK also possible along with the closure of 57 UK stores as sales still fall.
Property giant British Land criticised retailers seeking to cut their rent bills as it released its full-year results. The company said some chains have been asking it to sacrifice too much as its portfolio value fell.
The latest Sunday Times Rich List at the weekend saw Arcadia boss Philip Green falling out of the billionaire’s club with the newspaper assigning no value to his controlling stake in the Arcadia fashion retail empire.
Select is likely to enter administration this Thursday and propose another company voluntary agreement in a bid to save the business from collapse. 2,000 jobs are at risk and store closures could be on the cards.
There are fears that the biggest hit from the Debenhams CVA if it’s approved this week will be suffered by smaller landlords with the 166 stores the retailer operates shared between 70 different property owners.
If we could be a fly on any wall, it would be the Arcadia boardroom on Tuesday with the board set to meet to talk about the future of the company’s various fashion chains in the UK and beyond, and its expected CVA.
Arcadia is believed to have struck a deal with bank giant HSBC for the latter to act as a guarantor of its ability to pay its suppliers as it works towards a possible CVA, which some analysts are expecting this week.
One of Boohoo’s co-funders has explained the fashion e-tail giant’s reasoning for taking on a new CEO with no recent e-tail experience saying that the company needed a large-company leader as it becomes much bigger.
Philip Green has offered to give his 90,000-square-foot Topshop flagship store on London’s Oxford Street as collateral to its pension fund. The five-storey shop is understood to be worth up to £600 million.