Arcadia CVA: agonising wait as vote is delayed seven days for more landlord talks
And the results of the Arcadia CVA meeting? Well, we don't actually know as yet as it seems that a decision has been postponed for a week so the fashion retail giant could conduct more talks with “a few landlords”.
The meeting, which was due to start at noon on Wednesday, had originally been convened so that creditors could vote on the seven company voluntary arrangements (CVAs) required.
The delay came against a backdrop of urgent behind-the-scenes talks that had earlier seen one key hurdle being overcome and Arcadia said that its plan now had the support of its pension trustees, The Pensions Regulator and the Pension Protection Fund. It added that it had secured “the full backing of our trade creditors and a significant number of landlords.” But it clearly didn’t have all landlords on board and by Wednesday lunchtime it had emerged that major player Intu was likely to vote against the CVAs, along with at least one other landlord, while others who were more likely to be in support had still not definitely made up their minds.
It meant that chief executive Ian Grabiner issued a statement saying: “It is in the interests of all stakeholders that we adjourn today's meetings to continue our discussions with landlords. We believe that with this adjournment, there is a reasonable prospect of reaching an agreement that the majority of landlords will support.”
Had the company's proposals not received the 75% creditor approval that they need, it's likely that Wednesday would have seen an administration filing with the prospect of Arcadia being broken up as a result.
While the postponement serves to delay the agony for its many thousands of workers, if it can edge the company closer to a deal that will see it starting on its recovery programme, a week is surely not a long time to wait.
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