Intu won't support Arcadia CVA plan - report

By

Sandra Halliday

Published
Jun 5, 2019

While Tuesday’s news that Sir Philip Green had struck an Arcadia pension fund  deal with the UK’s pensions watchdog seemed to suggest the group’s CVA had a better chance of getting through than not, a report on Wednesday that one key landlord will oppose the plan has left it on a knife edge.

It seems that Intu, which owns malls such as Lakeside, Merry Hill and Metrocentre, will oppose the restructuring plan as it currently stands. Arcadia is aiming to close a raft of stores and get big rent reductions on others.

It needs 75% of its creditors to vote in favour of a series of CVA proposals to get the plan through. But an Arcadia source confirmed to Sky News that Intu has said it would not vote in favour.

Will its opposition be enough to scupper the CVA? Possibly. In fact there are seven CVAs on the table and Intu could have enough weight to derail at least one of them. 

But although “at least one other substantial Arcadia store owner” seems to be taking the same approach as Intu, other major landlords are said to be veering towards voting in favour. However, even those who are broadly supportive reportedly say final decisions have not been taken and won’t be until the meeting itself, which starts at around mid-day in London.

If the CVA doesn’t get the necessary votes, Arcadia is expected to crash into administration as soon as Wednesday evening with a break-up of the group likely to be the result as potential buyers cherry-pick the best parts of the business.