US landlords withdraw legal challenge to Arcadia CVA
Two US landlords have withdrawn their legal challenges to Sir Philip Green’s restructuring plan for his embattled retail empire Arcadia.
The businessman has reached an agreement with Vornado, which owns two Topshop stores in New York, and Californian landlord Caruso.
Read more: US property firm challenges Arcadia restructuring plans
The retail landlords had launched an offensive against the retailer’s company voluntary arrangement plans which were narrowly passed by shareholders in June.
Arcadia’s Topshop USA business went bankrupt, forcing the closure of 11 Topshop Topman stores across the country.
In the UK, the restructuring plans have sparked a raft of store closures and rent cuts.
Arcadia chief executive Ian Grabiner said: “With these legal challenges now withdrawn all the components of the CVAs can now be implemented.
“On behalf of the board, I would like to thank all of our staff, customers and creditors for their loyal support during this tough period for retail business.
“We can now look forward to implementing our strategy and delivering our growth plan for the group.”
Read more: Sir Philip Green offers landlords cash to save Arcadia rescue plan
A separate legal challenge filed in the US by Vornado and four other property firms was dismissed last month.
The landlords had accused Arcadia of “engaging in a convoluted scheme to deprive the…US landlords of their bargained-for contractual rights by manipulating and exploiting a private, little-used out-of-court process in the UK known as a company voluntary arrangement”, the Financial Times reported.