Sir Philip Green’s family has agreed to plough up to £10m a year into offsetting the impact of rent cuts on landlords of their Topshop to Burton retail empire in a bid to secure backing for a crucial rescue restructure.
Under new proposals sent out on Friday, some landlords who had been asked for rent cuts of 70% will now only see their rent halved. Those previously asked for 30% cuts will now only be asked to take 25% less.
Crucially, it is understood that the difference between the old and new rent cuts will be made up by the Green family, at an estimated cost of about £10m a year. So, for example, landlords will receive 50% of rents on affected stores but Arcadia will pay 30% and the Green family 20%.
The concession comes as Green and his advisors have less than a week to seek agreement from landlords for a complex rescue plan or see Arcadia collapse into administration putting 18,000 jobs at risk.
A crucial vote on the plan, which involves seven insolvency procedures called company voluntary arrangements (CVAs), was unexpectedly postponed on Wednesday after failing to win enough support.
The final vote is set to be held on 12 June.
More details to follow …