LONDON, June 7 (Reuters) - Philip Green’s Arcadia has offered better terms for landlords in a restructuring plan for the struggling British fashion retailer, seeking the support of creditors to prevent the group from collapsing into administration next week.
Arcadia said on Friday the cost of the sweetened terms would be met by Tina Green - Philip Green’s Monaco-based wife and the ultimate owner of a group which employs 18,000.
On Wednesday a meeting of creditors held to vote on Green’s plan, which would close stores, cut rents and make changes to the funding of the group’s pension schemes, was adjourned until June 12 after several landlords declined to support it.
In an attempt to win over the dissenting landlords Arcadia has now proposed a reduction in rental costs of between 25% and 50% across 194 locations out of the group’s 566 UK and Irish trading locations over a three year period versus cuts of 30% to 70% previously.
The cost, expected to be 9.5 million pounds ($12 million) in the first year, will be entirely funded by Tina Green.
“Having already secured the support of our pensions trustees, trade creditors and a significant number of landlords, we hope these final revised terms will ensure the majority of landlords support the Company Voluntary Arrangement (CVA) at next week’s vote,” said Ian Grabiner, CEO of Arcadia.
The group has said that if the seven CVAs covering its brands are not passed it will likely be placed into administration.
Arcadia’s landlords include British Land, Intu Properties, Aviva and Land Securities.
Separately on Friday British lawmakers said they had raised concerns over the funding of Arcadia’s pension deficit. ($1 = 0.7838 pounds) (Reporting by James Davey Editing by Alistair Smout/Keith Weir)