Arcadia closures could harm High Street rivals

Sir Philip Green’s plans to shut shops and negotiate cheaper rents could hurt other businesses on the High Street, the organisation who speaks for landlords and retailers warned on Thursday.

Arcadia last night said it plans to shut 23 of its 566 stores in Britain via a company voluntary arrangement — a form of insolvency with landlords and other creditors, which would also allow the Topshop and Miss Selfridge owner to seek rent cuts.

Ed Cooke, chief executive of property trade association Revo, said of CVAs: “The process not only penalises property owners, it disadvantages those businesses which are trading successfully within their lease agreements.”

Under the proposal rents could be slashed at another 194 stores. The vote on the rescue plan is on June 5.

Green and his wife Lady Tina, who is the ultimate owner of Arcadia, are prepared to put £100 million into the scheme to make up for a shortfall in pension contributions, but the Pensions Regulator thinks it would not be enough to protect pensioners.

When asked how he thinks the vote will go, Green said: “Is that a serious question?”

Arcadia store to close