Shopping centres owner Intu will vote against a revised survival plan for Sir Philip Green’s Arcadia fashion empire, insiders say.
Landlord Intu, which leases 35 stores to Green’s brands including Dorothy Perkins and Topshop, will not back a restructuring at a vital meeting tomorrow. The firm deems it unfair to its other retail tenants and not in the interest of shareholders, according to property sources.
One industry source pointed out that yesterday Intu revealed footfall was up 1.1% across its malls last month, so it does not want to give in-demand store space away at a discount. Its figures contrasted with data from Springboard, which said footfall across the country was down by 3.5% in May.
Arcadia wants to shut 23 shops and cut rents at 194 of its remaining 543 sites. Original plans were rejected by some landlords last week.
The retailer, which employs about 18000 people, has since put forward less aggressive terms on rental cuts. Approval is needed to stave off administration.
The meeting is still planned for tomorrow and Arcadia is continuing to talk with landlords.
Arcadia joins a list of firms that have looked to Company Voluntary Arrangements to cut rents amid a tough market, with weaker consumer confidence, higher business rates and competition from online rivals.
