Arcadia receives challenges on CVAs from US property group

Philip Green’s Arcadia has received a challenge from two legal entities of US property group Vornado, in relation to the company voluntary arrangements (CVAs) which were agreed last month.

The retailer had all seven of its CVAs approved last month allowing it to restructure to avoid administration, more than 23 stores are expected to close.

This confirms reports made last month that a group of landlords would challenge the CVAs, which would see all 11 Topman and Topshop stores close in the US. Vornado owns both of Topshop’s New York stores.

Ian Grabiner, CEO, Arcadia Group, said: “These challenges are entirely without merit and we will vigorously defend them. The CVAs are a vital part of our restructuring, putting the business on a firm financial footing and enabling significant investment as part of our growth plans which will ultimately benefit all our stakeholders. Our Group continues to trade as normal and we remain focussed on delivering our turnaround plans.”