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Retail company Arcadia has amended the rental reductions for the seven company voluntary agreement (CVA), which are needed for the company to restructure.
The original CVAs requested between 35-70% rental reductions in 194 of Arcadia’s 556 locations in the UK and Ireland.
However, after failing to reach agreements with certain landlords, the company has agreed to lowering the rental reduction to between 25-50%.
This new comes just two days after the creditors’ meeting to vote on the CVAs was postponed (5 June) in the fear that the CVA proposal would be rejected. A new vote is to take place on 12 June.
The news comes in a busy week for Arcadia, as owner Philip Green agreed a deal with the Pensions Regulator to pay £75m into the pension fund over the next three years, in a bid to close the pension fund deficit.
Ian Grabiner, CEO of Arcadia, said: “Having already secured the support of our pensions trustees, trade creditors and a significant number of landlords, we hope these final revised terms will ensure the majority of landlords support the CVA at next week’s vote. Their support is vital for the long term sustainability of the group, our 18,000 employees and our extensive network of loyal suppliers.”
