Sir Philip Green is preparing to unveil a company voluntary agreement (CVA) for Arcadia in a matter of weeks, Sky News has reported.
According to Sky News, discussions with landlords and creditors will take place in the coming weeks. Sources said Arcadia’s chief executive, Ian Grabiner, suggested the restructuring programme could be launched in late April or early May.
The decision requires approval from The Pensions Regulator, but sources have said this will only be approved if Arcadia is shown to be able to meet its pension contribution obligations.
The retail group has seen a turbulent 12 months; in May its profits dropped by 42% and losses of £10.9m for the year up to August 2017 and earlier this year, Green reportedly drafted in Deloitte to review the company.
Green was also named in Parliament as the businessman facing allegations of sexual harassment, bullying and racism. These accusations were followed by Ivy Park – the fashion line owned by Beyonce – buying Topshop out of its 50% stake and chairman and BBC Apprentice star Karren Brady departing from her role as chairman of Taveta Investments, the company behind Arcadia.