Sir Philip Green wins legal battle against US landlords
Retail tycoon Sir Philip Green has won a legal battle with a group of US landlords after a court dismissed their claim following the collapse into bankruptcy of Topshop USA.
Five US landlords including Vornado were attempting to recoup more than £100m, saying that Green’s restructuring of retail empire Arcadia had compromised their rights as foreign creditors, the Sunday Times reported.
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Arcadia is now able to move funds generated by liquidating stock from the 11 shuttered US stores back to the UK.
The cash will be used to pay debts owed to creditors affected by Arcadias company voluntary arrangement (CVA), which is being used to close 50 UK stores and slash rents at 194 branches.
Green managed to squeeze through the controversial restructuring plan last month.
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Arcadia, which owns high street brands including Topshop and Dorothy Perkins, could have collapsed into administration if creditors had opposed the CVA proposals, which would have put 17,000 jobs at risk.
In a bid to win the support of landlords Green’s wife and Arcadia’s majority shareholder Tina made a last-minute pledge to invest a further £50m of equity into the group in addition to £50m of funding provided in March.