Friday , August 12 2022

Philip Green looks at the job and reduces the amount in Topshop's renewal


Philip Green is launching a restructuring of his Topshop Empire, trying to cut costs in the largest private fashion retail chain in the UK and launch a fierce battle with landlords.

The scandalous billionaires want to reduce the number of jobs, reduce their store portfolio and reduce rental and price costs in their Arcadia group, whose brands include Topshop, Burton, Vallis and Miss Selfridge.

Arcadia says it "explores several options" to deal with "an extremely challenging retail market and". . . constant pressures that are specific to the UK high street. " They did not "include a significant number of releases or closings of stores".

One property advisor said it would be "absolute noise in the industry" if, as expected, Arcadia tried to use a voluntary agreement by the company to cut costs.

CVA allows the company to continue trading while reducing debt, but that would be controversial due to the size of the store and significant personal fortune of Sir Philip and his wife, estimated at over 2 billion pounds.

One of Arcadia's landlords said: "Under CVA, we have to see that the management team has a credible proposal to get the job back to financial health. Otherwise, this would be the abuse of the CVA process and unfairness towards other traders who work hard at challenging times. We would vote for any such CVA. "

Like other fashion merchants, Arcadia has come under the pressure of higher rent, payroll and raw material costs, weakening consumer confidence and structural shift towards online shopping. In the year to August 2017, the last for which accounts available, based on the Taveta operating profit, holding for the group, fell by 40 percent to 124 million pounds. However, at that time the group had a net cash of 157 million pounds.

The Pensions Board is also discussing with Arcady's entrants the scheme of defined pensions, people in discussions have said. The scheme had an accounting deficit of £ 300 million in August 2017, although Arcadia pays 50 million pounds a year to reduce the deficit.

The regulator said he can not comment on individual companies, but this issue is particularly sensitive because of the BHS collapse controversy in 2016, which left its lack of a pension plan without a sponsor. Sir Philip eventually paid £ 363 million in a plan, which has since been sold to insurers.

The tycoon's reputation has recently taken place after media reports of alleged sexist and racist violence, which he fiercely denounced, and the use of a non-delinquent agreement to make the allegations secret.

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