Sir Philip Green’s Arcadia retail empire has been saved by a rescue deal that will trigger the closure of 48 stores and a thousand jobs.
The plan, a Company Voluntary Arrangement (CVA), was approved by Arcadia’s creditors.
After a week’s delay and five hours of discussion Arcadia’a landlords finally agreed to rent cuts, 23 store closures and 520 job losses.
Following the CVA, another 25 stores and another 500 jobs will be axed.
Ian Grabiner, CEO of Arcadia Group, said he was “confident about the future of Arcadia”.
“From today, with the right structure in place to reduce our cost base and create a stable financial platform for the Group, we can execute our business turnaround plan to drive growth.”
The CVA forces store closures and reduced rents of 25% to 50% across 194 of its 566 UK and Irish stores over a three-year period.
Lady Tina Green, Sir Philip Green’s wife and Arcadia’s majority shareholder, has agreed to invest £50m of equity into the group, in addition to the £50m of funding already provided in March.