Massive day for UK retail stocks!

Wednesday, 12th June 2019 09:13 - by Rajan Dhall

Today Sir Phillip Greens Arcadia group finds out if their landlords accept a cut-price rental agreement to save the empire.

The vote has already been postponed once as the group faced defeat and today Intu Properties owner of Lakeside shopping centre are still said to be opposing the deal. Land Securities, which owns 24 Arcadia outlets, is a crucial swing vote.

It has been said by some analysts that today's deal is most likely to be rejected too. Either way, it will be a rocky session for the likes of Debenhams, Sports Direct and Next. Interestingly this could go 2 ways for the related stocks. One, it could take out some of the major competitors and the second if a deal is agreed they could go back at some stage and negotiate their contracts. One thing is for sure the situation is unsustainable at present and something has to give. Lastly, if the landlords reject the deal it could have a major impact on costs for the current retail industry and the pain could be felt for that much longer.

All in all, the group has 18,000 jobs at risk at the likes of Topshop, Burton, Dorothy Perkins and runs around 500 shops. On a day that Boohoo reported a 39% rise in total revenue, it seems sick that Arcadia await their fate as they didn't manage to keep up with consumer online trends. 

The meeting is set to start at noon, near St Paul’s and by the end of the day, we’ll know the fate for the Green empire.

Kind Regards

Rajan Dhall

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.