Reading: Two stores close as part of Sir Philip Green’s Arcadia CVA

Dorothy Perkins and Burtons Menswear stores in Reading will close as Sir Philip Green’s Arcadia Group launched its proposed CVA with plans to close 23 stores, affecting 520 jobs, across the UK.

The plans will see Burton, Dorothy Perkins, Miss Selfridge and Topshop stores close while rents would be cut at another 194 stores at the Arcadia group.

The pensions regulator’s support will be needed in order for the Company Voluntary Arrangement (CVA) to be approved and to avoid administration or a break-up.

The proposal states that former Bhs boss Green’s Arcadia Group will put an additional £100m into its scheme over a number of years to plug the gap in any shortfall in pension contributions. However the regulator has warned the plans may not be deemed sufficient.

Arcadia also plans to shut all its 11 Topshop and Topman stores in the US. The group has shut 200 UK stores shut over the past three years.

GCW and Deloitte have been working with Arcadia on the process.

Intriguingly the CVA is understood to include no dilution of dilapidations, which is being seen as a significant concession to landlords.

It is also understood that Green has upped his offer to landlords of a 10% stake in the Arcadia business to a 20% stake as part of the process.

The stores slotted for closure are:

Aberdeen (Dorothy Perkins/Burton Menswear)
Ashton Under Lyne (Topshop Topman)
Bedford (Topshop Topman)
Cheshunt (Outfit)
Bluewater (Miss Selfridge)
Fareham (Topshop Topman)
Glasgow – Buchanan Street (Burton Menswear/Topman)
Luton (Topshop Topman)
Newcastle upon Tyne – Northumberland Street (Outfit)
Nuneaton (Topshop Topman)
Reading (Dorothy Perkins/Burton Menswear)
Salisbury (Topshop Topman)
Southend (Miss Selfridge)
Stirling (Dorothy Perkins/Burton Menswear)
Swindon (Miss Selfridge/Wallis/Evans)
Swindon (Dorothy Perkins/Burton Menswear)
York (Dorothy Perkins/Burton Menswear)
Cork (Dorothy Perkins/Evans)
Dublin – St Stephen’s Green (Topshop/Miss Selfridge)
Dublin – Jervis (Topshop Topman)
Dublin – Henry Street (Evans/Wallis)
Dublin – Liffey Valley (Wallis); Galway (Miss Selfridge)

Source: CoStar