Philip Green's Arcadia group on a knife-edge as creditors vote on rescue plan - business live

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Property Week agree that the vote of Land Securities (one of the U’s largest commercial property firms) will be crucial today. They say :

Landsec holds Arcadia’s survival in its hands for the second week in a row.

Even if the commercial property giant abstains, that is expected to be enough to give Sir Philip Green victory.

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Arcadia remains hopeful that landlords will approve its CVA deal today, at the second time of asking.

One insider told Retail Week:

“Arcadia wouldn’t take it to a vote tomorrow if it wasn’t hopeful of getting it over the line. It would have pulled the plug and gone into administration instead.”

The threat of administration looks like Green’s best weapon. He can tell landlords that their choice is lower rent, or no rent at all.

However, this ultimatum rather lost its force last Wednesday when Arcadia delayed the CVA vote in the face of defeat, rather than plunge into administration. That handed power to the landlords, forcing Sir Phil to put more his family’s money into the deal.

Related: Philip Green pledges family cash to save Topshop rescue deal

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With Arcadia’s future up in the air, shoppers would be wise to check their purses and wallets for any gift cards from Top Shop, Miss Selfridge, Dorothy Perkins and Burton.

Should the company fall into administration, such cards might be hard to redeem:

Related: Got a Topshop or Miss Selfridge gift card? Then use it now

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With shopping centre owner INTU opposing the Arcadia structuring, the position of other landlords is now crucial.

Land Securities, which owns 24 Arcadia outlets, is a crucial ‘swing voter’, as my colleague Sarah Butler explains:

The likelihood of M&G backing the deal looked slim on Tuesday night after it emerged that the investment company was taking legal action against Debenhams’ CVA which was approved by creditors last month.

However, there were rumours that Aviva was now prepared to back the deal while others, including the Crown Estate, Land Securities and Aberdeen Standard were still wavering. The position of Land Securities, one of the most significant waverers, was also unclear on Tuesday night. Land Securities owns shopping centres including Bluewater in Kent, and One New Change in the City of London.

Sources at one major landlord said they did not think the revised offer was enough and that there was a strong chance the deal would fail.

“There was no consultation before [the new deal was put out]. It was ‘that’s it and we’re off’ … It feels pretty close,” the source said.

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Introduction: Arcadia creditors vote on company's future Burton and Dorothy Perkins shops at the Rock shopping centre in Bury, Greater Manchester. Photograph: Christopher Thomond/The Guardian

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

The future of Sir Philip Green’s retail empire, and the jobs of 18,000 staff, hang in the balance this morning.

The landlords who own Arcadia’s stores across the UK are heading to central London to vote on whether to accept a restructuring plan that will lead to hundreds of job cuts and scores of store closures.

If they reject the offer, then Arcadia could sink into administration - one of the biggest retail failures for years.

Today’s vote is extremely close. We know that because Green was forced to dramatically halt a vote on this Company Voluntary Arrangement a week ago -- once it became clear that landlords weren’t playing ball.

Related: Vote on Green's Arcadia plan postponed with 18,000 jobs on the line

Green has been working the phones since (his famous old Nokia handset must be red hot), trying to twist landlords’ arms to approve the plan.

He has also been forced to sweeten the original deal -- reducing the rent cuts which landlords were being asked to swallow. They now face a hit of 25%-50%, down from 30% to 70% before.

But it may not be enough! Property group INTU has indicated it will oppose the CVA deal again today. That’s bad news for Green - INTU owns 35 Arcadia stores, or around 15% of the vote.

Arcadia needs 75% support to get the restructuring deal over the line, so

One INTU source argues that Arcadia’s proposal isn’t fair.

Arcadia is asking for a significant discount on valuable space, and Intu is not prepared to give way. Intu wants to create a fair environment for all its retailers and taking a huge haircut from one of them is not fair.”

Related: Arcadia on the brink after Intu rejects revised CVA plan

The meeting kicks off at noon, near St Paul’s. By the end of the day, we’ll know if the bell is tolling for Green’s empire, and the jobs of thousands of staff at Top Shop, Miss Selfridge, Dorothy Perkins and Burton.

Also coming up

Trade war jitters continue to dominate the financial markets, as investors wonder if Donald Trump and Xi Jinping will reach a deal at the G20 meeting later this month.

European stock markets are expected to open lower, as recent optimism fizzles...

enltrFutures sliding further: #FTSE 7367 -0.43% #DAX 12089 -0.55% #CAC 5379 -0.55% #MIB 20470 -0.68% #IBEX 9236 -0.50%

— IGSquawk (@IGSquawk)

The latest US inflation data may also move markets, as it could help determine whether America’s Federal Reserve central bank cuts interest rates soon (as Trump is demanding).

enltrThis is because the Euro and other currencies are devalued against the dollar, putting the U.S. at a big disadvantage. The Fed Interest rate way too high, added to ridiculous quantitative tightening! They don’t have a clue! https://t.co/0CpnUzJqB9

Donald J. Trump (@realDonaldTrump) The agenda
  • : European Central bank president Mario Draghi speech on “global headwinds”
  • Noon: Arcadia creditor meeting begins
  • : US inflation figures for May

block-time updated-timeUpdated at

852 2019-06-15T07:00:00Z true 2019-06-12T07:00:07Z false false 2019-06-12T07:25:05Z true UK theguardian.com https://gu.com/p/bkdjb

false true https://media.guim.co.uk/a793bf2a8de19eb1f5f6e3e0f5a90274a4742c5e/0_237_3500_2100/500.jpg false en Property Week agree that the vote of Land Securities (one of the U’s largest commercial property firms) will be crucial today. They say: Landsec holds Arcadia’s survival in its hands for the second week in a row. Even if the commercial property giant abstains, that is expected to be enough to give Sir Philip Green victory. Arcadia remains hopeful that landlords will approve its CVA deal today, at the second time of asking. One insider told Retail Week: “Arcadia wouldn’t take it to a vote tomorrow if it wasn’t hopeful of getting it over the line. It would have pulled the plug and gone into administration instead.” The threat of administration looks like Green’s best weapon. He can tell landlords that their choice is lower rent, or no rent at all. However, this ultimatum rather lost its force last Wednesday when Arcadia delayed the CVA vote in the face of defeat, rather than plunge into administration. That handed power to the landlords, forcing Sir Phil to put more his family’s money into the deal. With Arcadia’s future up in the air, shoppers would be wise to check their purses and wallets for any gift cards from Top Shop, Miss Selfridge, Dorothy Perkins and Burton. Should the company fall into administration, such cards might be hard to redeem: With shopping centre owner INTU opposing the Arcadia structuring, the position of other landlords is now crucial. Land Securities, which owns 24 Arcadia outlets, is a crucial ‘swing voter’, as my colleague Sarah Butler explains: The likelihood of M&G backing the deal looked slim on Tuesday night after it emerged that the investment company was taking legal action against Debenhams’ CVA which was approved by creditors last month. However, there were rumours that Aviva was now prepared to back the deal while others, including the Crown Estate, Land Securities and Aberdeen Standard were still wavering. The position of Land Securities, one of the most significant waverers, was also unclear on Tuesday night. Land Securities owns shopping centres including Bluewater in Kent, and One New Change in the City of London. Sources at one major landlord said they did not think the revised offer was enough and that there was a strong chance the deal would fail. “There was no consultation before [the new deal was put out]. It was ‘that’s it and we’re off’ … It feels pretty close,” the source said. Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. The future of Sir Philip Green’s retail empire, and the jobs of 18,000 staff, hang in the balance this morning. The landlords who own Arcadia’s stores across the UK are heading to central London to vote on whether to accept a restructuring plan that will lead to hundreds of job cuts and scores of store closures. If they reject the offer, then Arcadia could sink into administration - one of the biggest retail failures for years. Today’s vote is extremely close. We know that because Green was forced to dramatically halt a vote on this Company Voluntary Arrangement a week ago -- once it became clear that landlords weren’t playing ball. Green has been working the phones since (his famous old Nokia handset must be red hot), trying to twist landlords’ arms to approve the plan. He has also been forced to sweeten the original deal -- reducing the rent cuts which landlords were being asked to swallow. They now face a hit of 25%-50%, down from 30% to 70% before. But it may not be enough! Property group INTU has indicated it will oppose the CVA deal again today. That’s bad news for Green - INTU owns 35 Arcadia stores, or around 15% of the vote. Arcadia needs 75% support to get the restructuring deal over the line, so One INTU source argues that Arcadia’s proposal isn’t fair. Arcadia is asking for a significant discount on valuable space, and Intu is not prepared to give way. Intu wants to create a fair environment for all its retailers and taking a huge haircut from one of them is not fair.” The meeting kicks off at noon, near St Paul’s. By the end of the day, we’ll know if the bell is tolling for Green’s empire, and the jobs of thousands of staff at Top Shop, Miss Selfridge, Dorothy Perkins and Burton. Also coming up Trade war jitters continue to dominate the financial markets, as investors wonder if Donald Trump and Xi Jinping will reach a deal at the G20 meeting later this month. European stock markets are expected to open lower, as recent optimism fizzles... The latest US inflation data may also move markets, as it could help determine whether America’s Federal Reserve central bank cuts interest rates soon (as Trump is demanding). The agenda : European Central bank president Mario Draghi speech on “global headwinds” Noon: Arcadia creditor meeting begins : US inflation figures for false false Graeme Wearden People walk past a Topshop and Topman store, owned by Arcadia Group, in central London. Burton and Dorothy Perkins shops at the Rock shopping centre in Bury, Greater Manchester.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

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