Landlords split over rescue deal for Sir Philip Green's Arcadia empire

Disgruntled landlords were on Wednesday at loggerheads over whether to back a controversial rescue deal for Sir Philip Green’s fashion empire that would stave off a collapse into administration.

Arcadia, owner of High Street retailers Topshop, Dorothy Perkins and Miss Selfridge, wants to shut 23 shops and cut rents at 194 of its remaining 543 sites.

The so-called Company Voluntary Arrangement plan needs 75% approval to pass to prevent the firm, which employs 18000 people, from going into administration as soon as tomorrow.

Landlords hold the key to the rescue after Arcadia’s suppliers supported the CVA. Green has also won the approval of the Pensions Regulator after striking a deal to put another £25 million into the retailer’s pension scheme.

But ahead of the vote, one major landlord revealed it would oppose the proposals as its other tenants would complain that rent cuts gave Arcadia an unfair advantage. Evening Standard knows of at least one other landlord planning to vote against for similar reasons, and Intu is understood to be opposing the plans too.

A senior source at another property firm thought it would back the deal, saying: “If the company goes into administration then there is the bigger headache of filling all the space immediately in this environment. The business has been struggling but it feels like it is worth a try. If I was a betting man I’d say it will happen. Once the pension regulator has approved the deal it also becomes a political nightmare for the landlords to pull it down.”