Scandal-hit Sir Philip Green wants to cut 100s of workers in drastic bid to rescue his retail empire
SCANDAL-hit Sir Philip Green is launching a drastic rescue plan for his retail empire.
His Arcadia Group is examining the possibility of a company voluntary arrangement (CVA) — which could cost hundreds of jobs.
The CVA — a type of insolvency — is used by retailers to ditch underperforming stores and reduce rents on others to keep a group trading.
The overhaul could begin next month, but requires the approval of creditors including landlords and the Pension Protection Fund.
Arcadia brands, including TopShop, Burton and Dorothy Perkins, have been losing market share, with Christmas sales thought to be poor.
Billionaire Green, who turned 67 yesterday, is reeling from racism and harassment allegations, which he denies. The row led to Arcadia chair Baroness Karren Brady stepping down.
The Pensions Regulator said yesterday: “We are in close discussions with the trustees.”
Reports said that the process could yet be halted or delayed. A sale is seen as another option.
Arcadia said last night: “Within an exceptionally challenging retail market, and given the continued pressures specific to the UK high street, we are exploring several options to enable the business to operate in a more efficient manner.
“None of these options involve a significant number of redundancies or store closures.”
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