Topshop owner proposes landlord concessions in bid to shore up support

Philip Green’s retail empire under severe pressure

Arcadia is planning to close six stores in the Republic. Photograph: Getty

Arcadia is planning to close six stores in the Republic. Photograph: Getty

 

Sir Philip Green has proposed concessions for landlords in a last-minute deal to shore up support for his retail empire’s restructuring plans.

The Topshop tycoon was offering smaller rent reductions than originally planned, with his family covering the difference, retail firm Arcadia said.

Under the initial proposals, shop-owners were facing rent reductions of 30-70 per cent. This will now be reduced to a range of 25-50 per cent.

Lady Green, the group’s shareholder, will fund the difference to the tune of £9.5 million (€10.7 million) initially.

It is expected that the total cost will be about £30 million over the next three years.

Meeting

The move comes after Wednesday’s meeting to vote on seven company voluntary arrangements (CVAs) was suspended to give Arcadia more time to negotiate with landlords.

Under the planned overhaul, Arcadia would close six stores in the Republic: four in Dublin, one in Cork and one in Galway. The closures would span Arcadia’s retail brands, including Topshop, Dorothy Perkins, Miss Selfridge, Evans and Wallis.

The flagship Topshop outlet at St Stephen’s Green in Dublin would be among the closures, as would the brand’s shop in the Jervis Shopping Centre in Dublin. – PA