British Land is expecting to vote in favour of Arcadia’s company voluntary arrangement at a crunch meeting on Wednesday, in a boost for the beleaguered retailer, according to a person briefed on its plans.
The landlord has made the tentative decision because of concessions negotiated by the investment bank PJT Partners on behalf of a group of landlords, the person said, including better terms on lease breaks.
But it will make a final decision at the meeting on Wednesday, in which Arcadia’s landlords must decide whether to back an insolvency arrangement that would see widespread rent cuts and more than 30 store closures. Arcadia accounts for 1.5 per cent of the group’s rent roll.
However another big listed landlord, Intu — which has 35 Arcadia units accounting for 4 per cent of its rent roll — will vote against the CVA proposals, according to a person familiar with its intentions.
Intu’s logic is that the rent haircuts “would not sit well with full rent-paying tenants,” that person said. Smaller landlords are also divided on whether to support the plans, while other large landlords voting include M&G Real Estate and Hammerson.
Philip Green’s Arcadia has argued the CVA is essential to saving the group, which includes brands such as Topshop and Dorothy Perkins, from administration.
Late on Tuesday Sir Philip and his wife Tina agreed a deal with the UK’s Pensions Regulator to secure the backing of the Pension Protection Fund for the restructuring.