(Alliance News) - Shopping centre owner Intu Properties PLC has told Philip Green's Arcadia it will vote against the retailer's proposed company voluntary arrangement, Sky News reported on Tuesday.
Intu's decision, which "insiders" said would not be reversed ahead of Wednesday's vote, makes it "very difficult" for Arcadia even if other landlords support the revised deal, the news agency reported.
Arcadia needs the support of 75% of creditors on Wednesday, and Intu's move could push the firm to the brink of administration, Sky said.
Intu is understood to believe that it would be better-placed to deal with an administration process for Arcadia, said Sky. Other landlords voting on Wednesday include Land Securities Group PLC, British Land Company PLC and Hammerson PLC, all of which are thought to be in favour of the deal.
https://news.sky.com/story/arcadia-on-brink-as-lakeside-owner-opposes-new-rescue-deal-11739592
Arcadia owns fashion brands such as Topshop and Topman, Miss Selfridge, Burton and Dorothy Perkins. Intu Properties, meanwhile, operates shopping centres such as the Trafford Centre in Manchester and Lakeside in Essex.
Over the weekend, Green proposed concessions for landlords in a last-minute deal to shore up support for his retail empire's restructuring plans. The Topshop tycoon offered smaller rent reductions than originally planned, with his family covering the difference.
A meeting last week to vote on seven company voluntary arrangements was suspended to give Arcadia more time to negotiate with landlords. The meeting is due to reconvene on Wednesday, when the CVAs which did not previously have enough support will be voted on again.
